Mon. Aug 26th, 2024

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Some Indian agricultural exports, including fruits and vegetables, have found entry into regions like Europe, Australia and the US difficult due to tough phytosanitary requirements.

“The (commerce) ministry is preparing a data set on export consignments that were rejected by European countries and other regions, where phytosanitary certifications are very stringent leading to major trade barriers despite a relaxation in duties,” one of the people mentioned above said on condition of anonymity.

“The commerce ministry will hold a stakeholders’ meet, which includes meeting Indian exporters, apart from engaging with officials of various countries to find a workable remedy for the contentious non-tariff barriers,” the person added.

A commerce ministry spokesperson didn’t respond to an emailed query.

A phytosanitary certificate is required for the export of agricultural products to ensure that produce is pest-free, disease-free, and meets other health requirements such as traceability at the farm level.

Such a certificate is necessary for the export of plants, plant products, agricultural produce, especially fruits and vegetables, and other regulated articles. Several markets don’t allow plant products into their countries without a phytosanitary certificate.

For example, produce such as mangoes, table grapes, okra, peanuts, curry leaves, among others, faced rejections in the markets of the US, Vietnam, EU, Saudi Arabia, etc. over higher than approved levels of chemical residues and pest.

Interestingly, Indian exporters to Australia continue to face quality certification issues despite the duty relaxation offered to them under a free trade deal signed recently between the two countries.

In the past five years, India has also signed FTAs with countries like UAE and Mauritius.

Earlier this month, India and the four-nation European Free Trade Association (EFTA) signed a free trade deal to integrate and strengthen supply chains, attract investments and generate new business opportunities. The EFTA comprises Iceland, Liechtenstein, Norway and Switzerland.

India is also in the process of negotiations for signing free trade agreements (FTAs) with the UK, European Union, and Oman, while talks with Israel and Canada on similar trade deals have halted due to the conflict in Gaza and a diplomatic spat between the two countries earlier.

Spokespersons of the EU, the UK, Australia and the EFTA block, who deal with trade-related matters, didn’t respond to an emailed query.

According to the World Trade Organization, sanitary and phytosanitary measures, by their very nature, may result in restrictions on trade. “All governments accept the fact that some trade restrictions may be necessary to ensure food safety and animal and plant health protection,” it said in a report.

“However, governments are sometimes pressured to go beyond what is needed for health protection and to use sanitary and phytosanitary restrictions to shield domestic producers from economic competition,” the report added.

India’s total export value of agricultural commodities stood at $29.74 billion during the first 11 months of FY2024, according to commerce ministry data. During the year-ago period, India’s total export value of agricultural commodities stood at $29.05 billion.

Overall, India’s export values across all commodities declined to $391.36 billion during the April-February period (FY2024) from $402.44 billion a year ago, underlining the impact of the global economic slowdown and tightening of interest rates in western countries.

Challenges like geopolitical tensions in Ukraine and West Asia, as well as trade route disruptions in the Red Sea region, have exacerbated the situation by increasing transport costs, thus hurting India’s exports.

 

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