Groundnut exports to be hit on strict Malaysia, EU norms

The two largest importers that account for 40% of exports have asked Indian traders to procure a health certificate for every consignment

Groundnut exports are likely to take a hit due to the stringent norms of the European Union (EU) and Malaysia to control aflatoxin levels.

The two largest importers that account for 40 per cent of exports have asked Indian traders to procure a health certificate for every consignment. The Export Inspection Council of India (EIC), under the commerce ministry, is issuing certificates.

This is required in addition to other certificates, including hazard analysis and critical control points (HACCP).

“We have been appointed as the only agency for issuing health certificates for groundnut exporters to Malaysia and the EU,” said an official.

After getting complaints from the two regions, Agricultural and Processed Food Products Export Development Authority (Apeda) had told the commerce ministry repeatedly about exporters not adhering to global norms. The official said importers had warned the Apeda a suspension of shipments could kick in.

Between April and December 2013, exports fell 14 per cent in volumes to 361,642 tonnes against 420,640 a year ago. Falling global prices of oilseeds have also lowered realisations 13 per cent. The groundnut realisation fell to Rs 66,000 a tonne in the first nine months of the current financial year from Rs 76,000 a tonne a year ago.
 

APEDA on December 31, last year, had asked recognized exporters including processing and milling units to obtain a provisional HACCP certificate for groundnut shipment after showing documentary evidences for their capability.

For determining aflatoxins levels in groundnut and its derivatives it would be mandatory that all public private partnership (PPP) consignments meant for export to the EU will compulsorily be vacuum packed only and no other type of packing will be used.  The sampling will be done in gunny bags and after clearance from the laboratory, the consignment will be vacuum packed under the supervision of the authorized laboratory, APEDA said.
 

“The entire trade gets affected because of a couple of errant exporters as importers set stringent norms, difficult to adhere to. Hence, exporters should always maintain global quality specification for not to spoil entire exports fraternity from India,” said Kishore Tanna, chairman of Indian Oilseeds and Produce Export Promotion Council (IOPEPC) under Ministry of Commerce.

India's output is estimated at six million tonnes this year, a rise of 10 per cent on a year ago.