Hindustan Times (Lucknow)

Agri exports may come under scanner after Indonesia stay

- Ravi Dutta Mishra & Dilasha Seth ravi.dutt@livemint.com

NEW DELHI/BENGALURU: Exporters worried that Indonesia’s suspension of Indian agri shipments citing failure to comply with certificat­ion norms may lead other countries to tighten inspection and scrutiny norms for Indian produce even as New Delhi mounted a diplomatic bid to get Jakarta to reverse its decision. India is holding hectic deliberati­ons through multiple diplomatic channels with Indonesian authoritie­s for release of the stuck shipments and an end to the suspension. The government is hoping that the suspension may be lifted in another week or 10 days.

Indonesia suspended Indian agri shipments on March 25 after New Delhi failed to comply with the registrati­on renewal requiremen­t for its 26 food certificat­ion laboratori­es for peanuts and grapes. In the process, several shipments already made, including those of spices and cereals, are also stuck, leading to uncertaint­y for Indian exporters.

India could not comply with Jakarta’s lab renewal requiremen­t in June last year due to the pandemic and had been seeking a 3-6-month extension. The renewal request was rejected by Indonesia in February due to non-compliance, two government officials told Mint.

India exported ₹1,774 crore worth of peanuts to Indonesia in 2020-21. Grape exports were worth about ₹1 crore but a prolonged suspension could dash hopes of boosting agri exports to the south-east asian country, experts said. “While the renewal of laboratori­es issue pertains to peanuts and grapes only, Indonesia is stopping all shipments of plant origin products, including cereals and spices like dried chilies, etc from March 25 onwards. We are taking it up with the Indonesian authoritie­s to expedite clearance soon,” said one of the officials cited above.

The official added that the Indian government has provided all the requisite data and that fresh registrati­on will take place soon. “The immediate impact of such a suspension is that majority of the agri consignmen­ts that are stuck may go waste. Peanuts, for instance, develop mycotoxins if they are not transporte­d swiftly. The other thing is such suspension­s act as a kind of whistleblo­wer event,” an expert from a not-for-profit research institute said.

Other countries may now tighten the inspection regime which could have a negative impact on all agri exports, experts fear. “Shipments which would otherwise go smoothly will now face greater scrutiny,” the expert quoted above added. He said although private labs continued to get themselves audited virtually , the Agricultur­al and Processed Food Products Export Developmen­t Authority, being a government body, may have chosen to wait during the peak covid-19 period.

Queries emailed to commerce and industry and APEDA remained unanswered till press time.

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