Eu Preferential Quotas Elude Indian Agri Exports

Indian agri products such as mushrooms and eggs continue to face differential tariff rates and quota systems in the European Union (EU).

"Though EU is the largest trading partner, there are a number of instances of differential treatment towards Indian products as compared to those from other countries," an India-EU joint study for enhancing trade and investment in food processing industry has said.

The study, conducted by the Federation of Indian Chambers of Commerce and Industry (Ficci) and the European Commission-appointed consultant, Asia Invest, said the EU has preferential quota systems and tariff rates for most agri-products exported from least developed countries and also from large trading partners such as Israel and Turkey.

"However, India does not fall into any of these categories and thus, inspite of supplying substantial volumes in certain products operates in a discriminatory trade regime," it said.

India-EU bilateral trade is estimated to be more than $20 billion. However, it constitutes about one per cent of EU's global trade.

The approval system for Indian companies interested in exporting animal products, including milk, to the EU has also become a prolonged process, the study said.

"Although the Export Inspection Council (EIC) in the country has already approved more than 20 dairy units, the European Commission (EC) is yet to notify the approval," it said.

The study has suggested setting up of EU offices in the country which would offer quicker and easier certification of Indian exports.

"There is an urgent need for accelerating the approval procedure for the exporting units in India, once cleared by the EIC," it said.

The study also suggested setting up independent world-class food testing and inspection facilities all over the country under bilateral assistance schemes.