Groundnut exporters' woes continue

Russia's ban on groundnut imports from India raises quality concern

The woes of Indian groundnut exporters don't seem to end. With Russia imposing a fresh ban on groundnut imports from India, the issue of quality compliance has surfaced again.

In its notification earlier this year, the Agricultural and Processed Food Products Export Development Authority (Apeda) had asked all groundnut exporters to secure quality certificates from the competent authority. Many exporters had objected to this, challenging the new regulations in the Madras High Court. Now, even as a verdict is yet to be pronounced, the ban comes as a blow to the industry.

"Now, brand India is at stake. A rejection and ban from Russia has worried the industry. This requires stricter compliance with the rules for quality," said Rajesh Bheda, chairman, Indian Oilseed and Produce Export Promotion Council (IOPEPC).

Last month, Russia's federal service for veterinary and phytosanitary surveillance had suspended rice and peanut imports from India.

According to data provided by Apeda, during the April-January period, groundnut exports from India stood at 4,55,415 tonnes, against 6,73,486 tonnes in the year-ago period.

Industry sources said groundnut supplies in the international market have increased, owing to bumper crops in the US and Argentina. According to estimates, for the year ending march, Argentina, the largest exporter of peanuts, is likely to record groundnut production of 8,70,000 tonnes, against 7,36,000 tonnes in the year-ago period.

"Last year was a bad year for key groundnut exporters China and Argentina. Hence, India recorded huge exports. But this year, there are bumper crops in Argentina and the US. So, the situation is different," said Bheda. He added groundnut exports wouldn't fall, as feared, but would stand at about 4,00,000 tonnes---higher than the three-year average.

Apeda has made it mandatory for groundnut processors to register with IOPEPC before March 31. The council would submit the data to Apeda. Exporters would have to ensure all groundnut processing units obtain HACCP (hazard analysis critical control points) certification by July 31.

On February 1, the Madras High Court had issued an interim stay on Apeda's regulations dated January 9. The stay followed a petition filed by Agrocrops Exim, challenging the regulations.

In its latest order, the court stated, "In the meantime, only those peanut exporters who complied with the regulations dated January 9 are permitted to export peanuts. This order is passed in modification of the earlier order passed on February 15, 2013."