Shelling units of groundnut have opposed the director general of foreign trade (DGFT)'s new registration rules for groundnut export in non European Union (EU) countries. The units also refused to be a compulsory member of Indian Oilseed and Produce Export Promotion Council (IOPEPC).
As per DGFT notification dated January 3, 2013, exports of groundnut have been subjected to registration with Agricultural and Processed Food Products Export Development Authority (APEDA) along with controlled Aflatoxin level certificate issued by APEDA recognized laboratories. Post the notification, Indian Oilseed and Produce Export Promotion Council (IOPEPC) officials met the commerce ministry and DGFT officials at Delhi last Monday. As a result of the meeting, the government has allowed groundnut export that are already on port for shipment till January 4, 2013 in a bid to simplify the process.
However, Rajesh Bheda, Chairman, IOPEPC, informed that APEDA has issued trade notice on January 9, 2013 which delineates the procedure to be followed for exports of groundnut and groundnut products (GGP) mentioning that exports will be allowed only from IOPEPC recognized units and warehouses.
During the meeting with shelling units and traders of groundnut, the industry has opposed strongly against new rules. "The IOPEPC should have discussed with us before going to the government. The rules that government impose are not viable for shelling units and traders and should rather be only for exporters," said Kalpesh Hindocha of Smiit International trade brokers from Junagadh.
Bheda mentioned that exports of GGP to countries other than Russia and EU also require the registration of shelling units wherein the objective is to bring in system of traceability of export consignments up to the level of unit which in turn keeps records of procurement from their suppliers.
Moreover, as per new rules registered units must have to follow CODEX rules for aflatoxin and moisture limitation rules to export. This is required in view of the fact that more and more countries are imposing stringent quality norms on imports of groundnuts. The government received multiple complaints from many importing countries and was asked to adhere to the commitment made under sanitary and phyto-sanitary (SPS) agreement of WTO.
Rajkot based peanuts shelling unit owner and past president of Saurashtra oil Mills Association (SOMA) Mukund Shah said, "When export of groundnut has increased in past two years then why these new rules are being imposed? It will abolish the industry's business."
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Government has fixed Rs 25,000 registration fees for two year wherein exporters have to show this registration detail in their export agreement. "The fees collected from registrations will be used for upgradation of groundnut shelling units," said Bheda.
There are around 5000 shelling units in Saurashtra region, mostly are located in Rajkot and Junagadh areas. On Sunday shelling units and peanuts traders had called a meeting to protest against new rules at Kedshod taluka of Junagadh district.