Food safety norms threaten exports

Food safety is fast becoming an essential pre-requisite for countries that export perishable food produce, and India cannot afford to lag behind.

In response, the Indian food and food processing industry is looking to reorganise itself to satisfy overseas buyers.

"India should move into more value-added exports, as compared with the commoditised exports currently taking place in the fresh produce segment," said Kairas Vakharia chairman of the agriculture and rural economy sub committee of Confederation of Indian Industry, western region.

Speaking ahead of the AG 2004 summit on fresh farm produce, to be held in Mumbai on November 25 and 26, he said the European Union had emerged as a major market for India in the fruit segment.

Indian export-oriented farmers would have to have their products certified under the 'Eurega' norm, which indicates the origin of the product and level of pesticide residue and other relevant information.

In calendar year (CY) 2003, India's total fruit exports amounted to Rs 191 crore approximately.

Of this, grapes accounted for Rs 130 crore, 80 per cent of which went to Europe and the UK.

The other two important fruits exported were pomegranate and mangoes, both of which were largely exported to markets in west Asia.

Pomegranate exports totalled Rs 36 crore, and 75 per cent of it was sold to buyers in West Asia.

"Europe has very rigourous specifications about the colour, size and bunching of grapes. Therefore, Indian farmers catering to the export market have to be educated on these issues," said Vakharia.

The additional cost for certification would be about Rs 7,000 per year for a farmer, and this could be done through a primary marketing organisation, exporter or co-operatives.

Vakharia said grape-farming was proving to be a very high margin business, with average profits at Rs 1 lakh per acre. Most of the holdings in the country were in the 5-10 acre category as far as grapes were concerned.