Groundnut exports down by 48% in last two months

Apeda's new regulation adversely affecting exports, forcing shelling units to shut down

Groundnut exports from India seem to have been adversely affected due to the new regulations by Agricultural and Processed Food Products Export Development Authority (APEDA). The industry data showed that groundnut export from India during January and February period this year has been declined by 48 per cent.

What's more, about 50 per cent of groundnut shelling units in Gujarat have been closed since last two months after APEDA new rules, traders claimed.

According to data provided by Indian Oilseed and Produce Export Promotion Council (IOPEPC), groundnut export from India during January and February 2013 stood at 70,917 tonnes, down by 65,491 tonnes as compared to last year during same period.

India had exported 136,408 tonnes of groundnut in January - February period in 2012. As per the data, total export in 2012-13 till February stood at 492,219 tonnes, which was 853,080 tonnes in 2011-12.

A Rajkot-based leading exporter said, "Main reason for decline in groundnut export is new rules of registration and certification. Buyers are cancelling the orders due to delay in executing the order."

It is also learnt that buyers have started arm-twisting the exporters to negotiate prices due to delay in shipments.

According to exporters, Indian peanuts prices are higher than international market. At presently for 80/90 count Indian peanut price is around $ 1,350 per tonne and for 40/50 count it is around $ 1,450 per tonne. While in the international market, the groundnut prices rule around $ 1,250-1,300 per tonne.

Vikram Duvani, managing director of Rachana Seeds Industries, Junagadh, said, "Weak demand in international market and higher Indian prices are affecting the off take and as result, around 40-50 per cent shelling units have closed their business in Gujarat."

There are around 5000 shelling units in Gujarat, mostly located in Rajkot and Junagadh region.

As per DGFT notification dated January 3, 2013, exports of groundnut have been subjected to registration with APEDA along with controlled Aflatoxin level certificate issued by APEDA recognized laboratories.

Moreover, as per new rules, the registered units must have to follow CODEX rules for aflatoxin and moisture limitation rules to export.

"We have to do business, but compulsory registration and certification has hurt our business badly during January and February", said Duvani.