Groundnut exporters form IPA to take on Apeda

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The storm against new regulations for groundnut and groundnut products export seems to be gaining momentum with groundnut exporters, processors, farmers and suppliers coming together to form the Indian Peanuts Association (IPA).

The national-level association has been formed to take forward the legal battle against Agricultural and Processed Food Products Export Development Authority (APEDA)’s new regulation for groundnut exports, and also to identify and resolve the prevalent issues faced by groundnut industry.

Apeda had issued new regulations of export of groundnut and groundnut products through control of aflatoxin, amendment-3 dated January 9, 2013 requiring groundnut processing units to register with the central body.

“We have brought together veterans of the groundnut industry and heads of various local un-registered associations under one roof of IPA. The registration process started yesterday and so far we have got about 700 member s nationally with about 300 members only from Gujarat,” said Saravanan L, founder president of IPA and director of Chennai-based Agrocrops Exim Ltd.

“IPA will take forward the legal battle against Apeda and Indian Oilseed and Produce Export Promotion Council (IOPEPC). With national participation and coordinated effort, the industry can challenge these bodies in Supreme Court as well,” he added.

On February 1, the Madras High Court had put an interim stay on implementation of Apeda’s regulations on export of groundnut and groundnut products through control of aflatoxin, amendment-3 dated January 9, 2013. The stay was given following a petition filed by Agrocrops Exim challenging Apeda’s new regulations.

However, last week, the high court had given some relief on the stay order clarifying that the order of stay granted on February 1, 2013 would not affect other peanut exporters. The newly formed trade body has already started setting up regional contact points to increase its penetration among the stakeholders. So far, IPA has set up two such points in Karnataka, one each at Junagadh and Rajkot in Gujarat, Pune in Maharashtra, Hyderabad in Andhra Pradesh and Cuttack in Odisha.

“Formation of IPA is a timely move. Already groundnut oil production has been on a decline. And stricter regulations by Apeda would further deteriorate situation for the groundnut processing industry. In such a situation there has to be a national body which looks into the interests of the groundnut industry,” said a trade analyst from Rajkot.

Headquartered in Chennai, IPA looks to have membership of around 2000, including groundnut farmers, processors, exporters, brokers and suppliers besides groundnut exporters by the end of February.