Quality concerns bug groundnut export

Groundnut export hit a record of 832,617 tonnes worth $1,094 mn in 2011-12, described as an exceptional year. It was 509,665 tonnes worth $526 mn in 2013-14

India’s groundnut export has a worry on quality.

Last year, 35 containers with around 700 tonnes of groundnut were held at a port in Vietnam after Olivier bugs were found in big numbers. These normally take birth in commodities like groundnut with a high moisture on premature harvesting and improper handling. The quarantine agency used chemicals to kill the insects and requested a halt to customs clearance.

“The port authorities in Vietnam were not clearing this cargo. The affected exporters approached us. We took up the issue with the Vietnam authorities and resolved it,” said Kishore Tanna, chairman, Indian Oilseeds and Produce Export Promotion Council.

The consignments were cleared after fumigating all containers but “threat of suspension of groundnut import from India continues”, said Suresh Ramrakhiani, chief executive officer of the Council. Under Vietnamese law, imports shall be suspended if three consignments are detected with serious violation of food safety regulation within six months. Any such suspension would spoil India's credibility on agri export, affecting other commodities and countries, too.

Groundnut export hit a record of 832,617 tonnes worth $1,094 million in 2011-12, described as an exceptional year. It was 509,665 tonnes worth $526 mn in 2013-14.

In the first half of this financial year, it jumped 37 per cent to 261,025 tonnes worth $271 mn, as compared to 189,952 tonnes worth $221 mn in the corresponding period last year.

Vietnam has slipped to number four slot from its second position three years ago. Exports to Vietnam were only 40,466 tonnes worth $38.6 mn in 2013-14 from 241,497 tonnes worth $313.9 mn in 2011-12. “We should explore the potential of value added oilseed products such as blanched peanuts and peanut butter,” said Tanna.

Groundnut export might be lower this year due to falling output. The Union agriculture ministry’s first advance estimate put output at 5.02 mn tonnes in the ongoing kharif harvesting season, as compared to 5.6 mn tonnes in a similar estimate last year, and 7.8 mn tonnes of actual output.