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India’s groundnut exports may face huge problem due to negligence in adhering to quality standards set by importing countries. Last year, 35 containers with around 700 tonnes of groundnut were held at Vietnam port in which “Olivier” bugs were found in huge numbers.
These bugs normally take birth in commodities like groundnut with high moisture on pre-mature harvesting and improper handling. After the discovery of the Olivier bug, the quarantine agency used chemicals to kill the insects and requested a halt to customs clearance procedures for the shipments.
A recent Vietnamese Circular allows the government authorities to carry out onsite inspection of foodstuffs in exporting countries if found violation of quality norms. The Vietnamese authority may carry out inspection in consultation with Indian authorities and visit plant and facilities for executing export consignments. The Vietnamese authorities may engage agencies that issue onsite inspection certificates to containers.
“Recently, some consignments of Indian groundnuts were facing difficulty due to the presence of infestation of 'Olivier' bugs on huge level. The port authorities in Vietnam were not clearing this cargo. The groundnut exporters affected by this issue approached the Council to take up this issue with Vietnam authorities. Accordingly, we took up this issue with the Vietnam authorities and resolved the issue,” said Kishore Tanna, Chairman, IOPEPC.
Last year, the Ministry of Agriculture and Rural Development included the insect - Caryedon serratus Olivier - in the Group I category of "harmful organisms that may cause serious damage to plants, which have not been found in the territory of Vietnam".
While with the involvement of highest levels of government officials and authorities from both sides i.e. India and Vietnam, the issue was resolved temporarily and consignments were cleared after fumigating all containers, threat still continues over possible suspension of groundnut import from India.
Under the Vietnamese laws, imports shall be suspended from the establishment (exporter) in case three consignments are detected with serious violation of food safety regulation within the period of six months. Suspension, if any, will spoil India’s credibility on agri exports which may spill over to other commodities and countries.
“The issue is resolved temporarily. But, threat of suspension groundnut import from India still continues,” said Suresh Ramrakhiani, Chief Executive Officer of Indian Oilseed and Produce Export Promotion Council (IOPEPC).
Groundnut exports from India have been falling consistently for the last three years. After hitting the record of 832616.93 tonnes worth $1094.22 million in 2011-12 which experts categorize as exceptional year, groundnut shipment from India slumped to 509664.85 tonnes worth $525.67 million in 2013-14.
By contrast, however, groundnut exports from India jumped by a staggering over 37% to 261025 tonnes worth $270.94 million in the first half of the current financial year as compared to 189952 tonnes worth $221.46 million in the corresponding period last year.
Vietnam has slipped to the number four slot now from its second position three years ago. In volume term, groundnut exports to Vietnam have fallen to a mere 40466 tonnes worth $38.63 million in 2013-14 from 241496.85 tonnes worth $313.93 million in 2011-12.
“Efforts should be made to restore India’s oilseeds exports to Vietnam. We should also explore the potential of value added oilseed products such as blanched peanuts and peanut butter,” said Tanna.
Meanwhile, India’s groundnut exports may also be lower this year due to falling output.
The Ministry of Agriculture in its first advanced estimates anticipated India’s groundnut production at 5.02 million tonnes during the ongoing kharif harvesting season as compared to 5.57 million tonnes in similar estimate and 7.81 million tonnes of actual output last year.
