The United States Food and Drug Administration (FDA) recently disclosed data on food imports over the last four years. Among the nations exporting food to the US, India, Mexico, and China have experienced the highest incidence of refusals. The data notably presents the challenges faced by Indian food exporters in the American market. High refusal rates still pose a challenging issue. This article provides a detailed analysis of India’s food export rejections, offering insights on international standards, impacts, and recommendations for improvement.
Key Aspects Related to India’s Food Export Rejections in the United States
Between October 2019 and September 2023, India, Mexico, and China had a high level of food export shipment refusals from America. India’s refusal rate stands at 0.15%, significantly higher than either China or Mexico. This rate suggests a higher instance of refusal relative to total exports. Various factors contributed to these refusals, including product contamination, Salmonella presence, usage of unapproved drugs, unsafe food additives, or misbranding in terms of nutrition labels and health claims. Nevertheless, over the last decade, there has been a decrease in India’s food export refusals in absolute terms. In FY23 alone, India’s food exports to the US reached USD 1.45 billion, a 16% hike from the previous fiscal year.
The International Measure Supporting the US’s Food Import Refusal
The World Trade Organization (WTO)’s Sanitary and Phytosanitary (SPS) Agreement ensures traded products between WTO members do not spread pests and diseases, and that food products don’t encompass harmful substances or pathogens. The SPS Agreement, effective from 1 January 1995, underpins the right of members to take sanitary measures for human, animal, or plant life and health protection, provided they coincide with the Agreement. The Agreement mandates measures be founded on scientific principles and evidence, not discriminate, accept equivalent sanitary measures from other members, and provide access for inspection and testing upon request.
Impacts of Frequent Food Export Rejections on India
Continuous rejections lead to increased regulatory compliance costs for Indian exporters. This necessitates investments in compliance measures, adding financial stress. Rejected shipments affect revenue, deplete trust among foreign buyers, potentially diminishing future trade opportunities, and impacting the livelihoods of farmers and businesses reliant on these exports. Moreover, these refusals may strain India-US trade relations, and impact India’s global image as a dependable food exporter.
Recommendations to Improve India’s Food Safety and Quality Standards
Improving India’s food safety and quality standards requires initiatives such as bolstering the role and capacity of the Food Safety and Standards Authority of India (FSSAI), enforcing comprehensive testing protocols to identify contaminants, pathogens, and adulterants, and adopting international best practices for food safety and quality management. Other recommendations include using blockchain technology for creating transparent and traceable supply chains and investing in advanced laboratory equipment for more precise and rapid testing. By implementing these measures, India can ensure a significant improvement in the safety and quality of its food exports, bolstering its global reputation as a reliable food exporter.
