Dip in oilseed exports force industry to get tough on quality

A number of countries have been rejecting Indian oilseeds because of poor quality and adulteration

After receiving several complaints from importing countries and facing a ban on Indian oilseeds, the Indian Oilseeds Produce and Export Promotion Council (IOPEPC) has launched an exercise to improve quality. According to the Council, the importance of quality standards is becoming increasingly important in world trade.
 
The move comes in the wake of muted oilseed exports from India so far. As against 1.3 million tonnes in 2014-15, this year exports have been merely about 400,000 tonnes in the first seven months of FY16. According to the Council, self-discipline within the industry towards quality enhancement alone can help in competing with other countries.

 
The IOPEPC has been conducting open house sessions to further deepen the relationship with industry and trade.
 

"Importance of quality standards is getting more impetus in world trade. More and more countries are bringing in stringent legislation to safeguard human health and, hence, require that imports must meet their quality standards,” said Sanjiv Sawla, chairman, IOPEPC. “In such a scenario it becomes extremely important to sensitize the units engaged in supplying oilseed and oils to the exporters, regarding existing quality standards and adoption of suitable food safety system."
 
Groundnut and sesame seeds have as much as 75% share of oilseeds export in India in the past two years. Yet, both seeds have faced fluctuation in trade due to several complaints imposed by the importing countries. Vietnam banned import of Indian groundnut due to constant complaints about quality. Moreover, a good crop of sesame seed in Africa has created a challenge for Indian exports which now reflects in the data.

 
According to a Mumbai-based leading oil seeds exporter, to survive against global challenges, the industry has been forced to act tough and channelise the entire trade from farm level to exporter level. "Self discipline is necessary otherwise we can see more difficult time in future," he said, while adding that the problem of adulteration and poor quality is prevalent not only with processors or farmers but also exporters at times.
 
In 2014-15 exports had risen to 1.38 million tonnes from 1.02 million tonnes in 2013-14 due to good demand from China and less production in competing countries like the US, Brazil and Argentina.

 
"The farmers should be given good quality of seeds. The selected seed varieties have export potential in terms of quality and yield should be promoted. The council aims at taking up a Seed Development Program," Sawla added.
 
Meanwhile, according to trade sources adulteration and quality compromise by few have led to the entire industry being maligned.
 
"Industry has suffered a lot as few orders have been rejected and importer countries have banned Indian products completely as they found the products below the committed quality. This, however, does not mean that entire industry is engaged in such kind of activity. The council too should support the industry at such times," said Mukund Shah, a seeds processor and president of Gujarat Oilseeds Processors’ Association (GOPA).