GOPA formed to oppose new DGFT export norms

The oilseeds processors say new export rules on gorundnut not viable

Leading businessmen and traders have decided to form the new association which can represent the industry before the central government

Groundnut shelling units of Gujarat have come together under a newly formed ‘Gujarat Oilseeds Processors Association’ (GOPA) to oppose new rules for groundnut export recently announced by the director general of foreign trade (DGFT).

Leading businessmen and traders have decided to form the new association which can represent the industry before the central government.

The move by groundnut shelling units and local traders comes following the DGFT notification dated January 3, 2013, where export of groundnut have been subjected to registration with Agricultural and Processed Food Products Export Development Authority (APEDA) and Aflatoxin level certificate issued by APEDA recognized laboratories.

Industry players believe that the new rules are not viable for the industry and will damage business prospects.

“We need to be united to fight against new export rules on groundnut. IOPEPC has failed to represent our industry so we have decided to create our own organisation and initiate talks with the Union government,” said Mukund Shah, president of the newly formed GOPA.

“It is clear that groundnut export from India has increased from 300,000 tonne to 850,000 tonne in last three years. Countries like China, Indonesia, Philippine are already buying from India and they like our products. At a time when we are growing, the new rules will destroy the small shelling units,” Shah said.

Mukund Shah said that we will soon meet the DGFT, APEDA officials and represent issues of the shelling units with regard to the new notification. "We are also in talk with Rajasthan, Karnataka and Andhra Pradesh based shelling units and groundnut exporters to protest against the rules," he added.

“We are ready to give best quality groundnut and we have no problem with grading levels of aflatoxin and moisture but the compulsory registration is not acceptable. It will make the process costlier and lengthy which is not viable for small units,” said Chandan Jain, managing director of Mumbai based MBM Trade Links Privet Limited.

Interestingly, IOPEPC officials had met the industry players and exporter at Rajkot and talked about new notification. The industry players had then refused to accept the new rules.

In a related development the Rajkot Chamber of Commerce and Industry (RCCI), Saurashtra Oil Mills Association (SOMA) and Bhartiya Kisan Sangh have also declared supports to peanuts exporters and groundnut shelling units.