ROUNDTABLE
K V V Mohanan managing director, K V Marine Exports Pvt Ltd Currently, India exports to the EU and some other countries. Our products are also recognised in other markets like the US, Canada, Asian countries like Japan and all Middle East countries. There is a major issue in EU testing, which needs attention. When an importing country detects traces of antibiotics from the cargo of the container from an exporter, the exporter’s name is entered into the red alert list and the same is communicated to all EU ports. As a remedial measure, the said exporter has to export 10 consignments under strict vigilance of EU authorities
Kishan Fofandi chief executive, Shiv Ganga Marine Products Some internal policy changes in the EU have resulted in stricter norms for Indian products. For aquaculture industry, the products follow the national or EU standards. Most units use technologies based on the EU policies. Further, the government only sanctions technologies and processes accepted by the EU norms, which makes implementation more important. The industry is already under pressure due to lack of raw material and reduced profit margins. With the stricter testing procedures, the industry will face increased financial burden, as these involve new testing requirements. The EU is expected to inspect 20 per cent of India’s aquaculture imports for antibiotics and microorganisms.
M M Ibrahim partner & MD, Quality Foods The new EU testing policy is to thoroughly inspect Indian products to ensure that they are disease free. This might have drawbacks but, in general, this is not a problem. With the policy imposed on Indian products, we will have to use modern and latest technology, which will actually be good for the industry. The testing is mainly for the aquaculture product, eg, black tiger prawns. According to this policy, farmers and fishermen will have to obtain a particular approval, and register in MPEDA for which they will be issued a catch certificate and a membership number. The new testing norm includes a precautionary testing measure for the aquaculture cargo, which if not followed, might lead to cargo rejection. The new testing norm will be an additional burden on exports. The industry is currently facing a financial
and thorough inspection by the Export Inspection Agency’s officials from the concerned country. After verification is complete, the exporter’s name is removed from the red alert list by the importing EU country, but this message is not sent immediately to all EU ports, which causes confusion to both exporters and concerned importers. Sharing this information by the EU authority with all EU ports will bring relief to most exporters.
Currently, the EU randomly inspects aquaculture imports from India. The new inspection process will be extended, delaying the products to reach the destination. However, the new EU norms will also facilitate the industry to seek new export locations. This will be an advantage, as we are facing stiff competition from other countries regarding exports. The industry needs to take proactive steps to prevent such issues in future. By accepting responsibility and strictly adhering to standard norms, the industry can fare better in exports.
crunch due to the decreasing dollar rate, affecting profits. Besides, the catch last year was not sufficient. Apart from the regular testing to incorporate the new tests, companies will have to invest in equipment and have an inhouse testing facility. Setting up this facility may need Rs 3-4 crore expenditure, which is huge. Another option is to send the products for testing to authorised EU and Export Inspection Agency (EIA) laboratories in select locations across the country. Further, the testing facilities are limited and available in select big cities. In both cases, companies will see a 5-10 per cent increase in costs. But, the industry has to follow the new procedures, & the government can help simplify this process by providing proper testing facilities at more locations.
May 2010
Modern Food Processing
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