'EU standards bleed Indian traders'

Indian exporters to the European Union (EU) are finding it increasingly difficult to comply with the EU's product and process standards, according to a survey by the Federation of Indian Chambers of Commerce and Industry (Ficci).

In some cases, the cost of complying with the EU standards was as high as 65 per cent of the production cost of the goods, with the high cost of EU compliance certificates and the lack of availability of certifying agencies in the country making exporting to the EU difficult, the survey said.

The cost of obtaining certificates required for exporting agricultural items, especially fruits, was high for samll as well as big exporters, the survey said.

It added that with a EurepGap certificate cost about Rs 1 lakh per farmer, a BRC Certificate E 4500 and a Kosher Certificate about E 3500.

The delay in redetermining the status of India as Geographical BSE (bovine spongiform encephalopathy) Risk-I (no risk of BSE) country by the EU was affecting exports, despite India providing the EU with all the technical information required, the survey pointed out.

India's proposal for approval of domestic egg processing units is pending with the EU authorities since 1997. Similarly, the authorities have not permitted exports from approved domestic milk units since 2001.

The CE certification is an expensive and time-consuming process, the cost involved being E 2,000 to E 5,000 per certificate.

Moreover, getting a CE certification within the country is not possible for certain class of products or tests, and not all qualified testing agencies in India are authorised to issue the certificate.

The survey also pointed out that to comply with some EU standards, Indian exporters would have to make fresh investments to the tune of $2 million to change their process of production.

In case of refrigerators, to comply with EU standards, it would require an investment of $2 million by an India exporter, it said.

The recommendations of the survey have been submitted to the ministry of commerce and industry with the chamber suggesting that the government take it up with the EU authorities.