EU googly hits Indian farm sector exports

HELSINKI: Indian agricultural exports to the EU suffer because of the 25-nation bloc’s stringent insistence on highest standards of quality. The qualitative benchmarks are such that many Indian exporters and also farmers are unable to meet them.

The EU has rejected large consignments of hot chilli powder, red chilli crushed, hot chilli pepper, ground chilli, curry powder, south Indian curry powder, tandoori masala, spice mix, chilli sauce, and spices containing chilli powder and a variety of other inputs, including dried apricots.

Some chilli products were rejected due to the presence of colour Sudan 1 and aflotoxins, some due to the presence of sulphur dioxide. Grapes were rejected as they were found to contain methomyl and other such ingredients.

Prawns, cuttlefish and squids were found to contain cadmium, salmonella, furazolidone and other substances. The EU's non-trade non-tariff barriers include labelling norms, testing and certification requirements, apart from labour and environment standards.

Even individual importers in the EU often formulate strict conditions, inflating the cost of Indian exports. The non-trade barriers imposed by the EU affected developing countries the most. Additionally, there are a large number of quality standards in the EU that apply to developing country agricultural products.

Small farmers lack the financial muscle to comply with the standards, and in a majority of Indian farmers are too poor to meet these requirements. Hence, Indian agricultural exports to the EU suffer.The campaign against leather products made from the skin of dead animals in India has also hit exports.

According to Indian business sources, the industry, which employs over 2.5m people, faces the threat of being shut out of world markets, with major importers banning Indian leather products on grounds of cruelty against animals.

European and American retail giants such as Marks and Spencer, Gap, J Crew, Clarks, Florsheim, Nordstrom and Wolverine, and Harley Davidson Footwear have stopped purchasing Indian products.Some have threatened to cancel orders if the handling of animals, particularly while transporting them to slaughter houses and skinning them, did not improve.