 "Apeda cancels licences of 5 groundnut exporters")
In a stern message to the violators of agri commodity export guidelines, the government-owned Agricultural and Processed Food Export Development Authority (Apeda) has cancelled the licences of five groundnut exporters over continuous violations of quality norms.
These groundnut exporters, largely from Gujarat and Maharashtra, have been found violating quality norms on several occasions despite repeated warnings issued by Apeda. But, instead of adhering to the quality specifications outlined by Apeda, these exporters were found ignoring warnings.
The issued erupted after these exporters found guilty of shipping groundnut to Vietnam with moisture and aflatoxin beyond their permissible levels. In fact, not only Vietnam but also European Union have returned several consignments in the past to Indian exporters after finding levels of moisture and aflatoxin in containers. Also, on several occasions, importers in Vietnam and European Union re-negotiated price amid threat of their return after finding of moisture and flatoxin.
“It’s a knee-jerk reaction from Apeda. There is no question of exporters not adhering to the quality specifications which change from country-to-country and even during shipment the quality of groundnut vary to the destination from the origin. Hence, it is not true to say that exporters have not adhered to the quality guidelines,” said Sanjiv Savla, chairman of the Indian Oilseeds and Produce Export Development Council (IOPEPC) under the Ministry of Commerce.
Groundnut exports from India remained under questions due to high moisture content in it and frequenting erupting aflatoxin issue in the consignment. Aflatoxin is a poisonous and cancer-causing chemical that is produced by certain molds (aspergillus flavus and aspergillus parasiticus) which grow in soil, decaying vegetation, hay and grains.
According to Apeda norms, groundnut containing a maximum 7% of moisture and ppb (parts per billion) or norms set up by importing countries whichever is lower, is allowed for exports.
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“Most cases are with regard to shipment to Vietnam where aflatoxin levels were well within the specified norm of 15 ppb. But, after consignments hitting the destination port, the aflatoxin level was found at 22-25 ppb. So, Apeda has identified this variation as lacunae. Aflatoxin, in fact, is not a homogenous product. Hence, such a variation is quite common,” said an exporter on condition of anonymity.
Trade sources believe that such a stern action will force exporters to shut down their units. Many units are exporting groundnut to the European Union where quality standards are much higher than Vietnam. In many consignments, the industry has found that the declaration of aflatoxin level “zero” at the time of shipping from Indian ports found changing to its level at “two or even more” at destinations.
India produces around 6 million tonnes of groundnut every year of which around 10% is exported of which Vietnam contributes 10-15%.
Groundnut exporters, meanwhile, have urged Apeda to relax quality guidelines being aflatoxin a common issue for smooth exports of the nut.