US law may hit food exports

Indian food and marine exports to the US, estimated at $1 billion a year, face a threat in the form of the US Bio-Terrorism Law, which comes into force this Monday.

The law requires all exporters to register with the US Food and Drug Administration (USFDA), appoint an agent in the US, and maintain full records of sourcing of ingredients.

"There is a question mark on all food exports to the US," said Ravi Mathur, CEO of EAN India, a non-profit organisation set up by industry bodies and the ministry of commerce to promote global supply chain standards.

According to Mathur, Indian food and marine product exporters are not yet aware of the implications of the Bio-Terrorism Law, and some do not have full records of their procurements till now. Failure to furnish full sourcing details to the US authorities can result in these consignments being held up at the port of entry.

"We don't have the luxury of time. As the largest importer of Indian agricultural commodities, marine products and processed food, the US market is one market that Indian exporters can scarcely ignore," he added.

Mathur said things could get worse for Indian exporters once the European Union Food Law comes into force in January 2005.

However, the government does not consider the new US law a hindrance to Indian food and marine product exports. "Earlier too, all exporters had to get their products passed by the USFDA. The new rules aren't too different," a senior government official told Business Standard, though he admitted that exporters will now have to maintain their records more diligently than ever before.

The US Bio-Terrorism Law

• All exporters will have to register with the US Food and Drug Administration
• Exporters will have to appoint an agent in the US
• Exporters will also have to maintain full records of their procurements
• Failure to furnish full sourcing details to the US authorities can result in consignments being held up at the port of entry