Indonesia, a major buyer of Indian groundnuts, has temporarily stopped imports. This decision, effective from September 3rd, is due to concerns about the quality of groundnuts, specifically high levels of aflatoxin. The Indonesian Quarantine Authority (IQA) issued a notification stating this. Shipments with bills of lading dated up to seven days before the order will be accepted. However, these will undergo strict inspection and retesting upon arrival in Indonesia.
The Agricultural and Processed Food Export Development Authority (APEDA) has responded by stating that all groundnut exports to Indonesia will be thoroughly checked for the next seven days. Any shipment found with deficiencies will be rejected. This strict measure will remain in place until the IQA issues new guidelines. This development follows an advisory by APEDA just four months ago. APEDA had urged its registered testing labs to follow export procedures carefully for peanuts and peanut products, focusing on correct sampling, analysis, and shipment procedures.
This intensified monitoring by the IQA comes after they noted high aflatoxin levels in peanuts and wheat imported from India. In mid-April, the IQA registered 17 food testing laboratories in India to conduct checks on agricultural products being exported to Indonesia. Indonesia is a significant market for India’s groundnuts, accounting for one-third of the total exports. Annually, India exports over 2.25 lakh tonnes of groundnuts to Indonesia, valued at $274 million.
This is not the first time Indonesia has raised concerns. In 2022, imports of agricultural products from India were also suspended. The reasons then were India’s failure to register its testing laboratories and the persistent issue of high aflatoxin levels in groundnuts. Indonesia follows the standards set by the Codex Alimentarius Commission (CAC) for aflatoxin levels in peanuts meant for direct human consumption. The permitted level is 15 parts per billion (ppb). This is considered more lenient than the European Union’s standard of 4 ppb.
Aflatoxins are harmful compounds produced by fungi, specifically Aspergillus flavus and Aspergillus parasiticus. These fungi thrive in warm, humid conditions and can contaminate groundnuts. Aflatoxins are known to be toxic, can cause cancer, and pose significant risks to human and animal health. Aflatoxin B1, in particular, is a potent liver carcinogen.
Industry sources suggest that the problem might lie with some testing laboratories in India. Reports indicate that some labs may be operating in inadequate facilities with insufficient equipment. An anonymous trade source mentioned that Indonesian officials had visited a lab in Chennai and expressed concern about its operational standards. This issue of aflatoxin has previously affected India’s basmati rice exports to the European Union in 2017, leading to a loss of market share. The source believes APEDA needs to strengthen its monitoring and accept responsibility for ensuring quality control.
This situation highlights the importance of stringent quality checks and adherence to international standards in agricultural exports. Maintaining high-quality standards is crucial for retaining market access and ensuring consumer safety in key export destinations like Indonesia.