UNCTAD Secretary-General's
High-Level Multi-Stakeholder Dialogue on Commodities
in the context of UNCTAD XII
28-29 January 2008
Adding Value to Agri-Food Exports
and Complying with Standards
By
Ms. Shashi Sareen
Director, Export Inspection Council India
The views expressed are those of the author and do not necessarily reflect the views of UNCTAD
ADDING VALUE TO AGRI-FOOD
EXPORTS AND COMPLYING
WITH STANDARDS
Presentation at UNCTAD Secretary
General’s High Level Multi-Stakeholders
Dialogue on Commodities in the Context
of UNCTAD XII
(28-29 January 2008, Geneva)
OUR CUSTOMERS
- The government whom we
advice on measures for sound
development of export trade
- Exporters whose products are
certified under our
consignment wise
inspection.
by
Ms. Shashi Sareen,
Director, Export Inspection Council
India
E-mail: director@eicindia.org
Coverage
• Issues arising out of existence of
standards in international trade
&
• Strategies and initiatives taken by
India to handle these
A Case Study of
Black Pepper
Pepper
WTO Scenario
• Establishment of WTO - Dismantling of traditional
barriers for free flow of trade
• Creation of global market-equal access to all
• Quality, health, safety & environmental issues have
acquired centrestage
• Governments imposing regulatory requirements to
fulfil objectives/ achieve appropriate level of SPS
protection especially for health & safety
• Private sector including retailers imposing stds
(including sustainability) for competitive advantage
• National regulation & voluntary standards causing
impediments to trade
• To prevent indiscriminate use, rules & disciplines
laid down in Non-tariff agreements–SPS/ TBT
• Issues wrt compliance with standards continue
SPS & TBT Agreements –
A Recap of Imp Features
• Allows countries to set their own/ adopt
international standards
• Scientific basis, MFN/ National treatment principle
• Encourage harmonization with international
standards – SPS permits higher standards based
on risk assessment
• Transparency
• Equivalence
¾allows countries to use different standards &
inspection methods
¾Encourages recognition of CA procedures &
results (mutual recognition)/ equivalence of
specified SPS requirements
ISSUES OF CONCERN 1
• Stringent standards increasingly being laid
down by importing governments – microbial,
contaminants, excreta (animals/rodents),
aflatoxin, pesticide residues
• Increasing focus on residues- Limits more
stringent than necessary, based on LOD
rather than risk, insistence on RMPs
• Regulatory standards more stringent - not
harmonized with international/ within EU
aflatoxin
• Transparency requirements
ISSUES OF CONCERN - 2
• Primary production - problem of
implementation of GAP in farms & other
primary production sites
• Traceability requirements being imposed
• Increasing rejections & destructions due to
incorrect interpretations or differing sampling/
test methods
• Rapid Alert System – alerts imposed on
rejection, but lifting alerts not streamlined
• Organic certification
• Non-GMO certification demanded
ISSUES OF CONCERN -3
• Irradiation – some countries approve
irradiation facilities even in 3rd countries
• Lack of interest by importing countries in
recognition of exporting countries control &
certification systems as equivalent
• Voluntary Standards – ISO 9000/ ISO 14000/
22000, organic certification, Euregap, BRC –
restricts market access till country upgrades,
also cost of implementation
• Retail chains, more value addition demanded
STRATEGIES & INITIATIVES BY
INDIA TO MEET GLOBAL
STANDARDS
Introduction to Black pepper
• Obtained from perennial climbing vine-Piper nigrum
flowers in June-July, pikes harvested in Jan – Feb
• Berries separated from stalk manual/mechanical
• Dried in sun for 5-6 days to get black pepper
• Pepper cleaned to remove stems, husks, pinheads
• Spicy odor-volatile oil; pungency-alkaloid piperine
• Exported as black (whole & ground), white, green,
canned /bottled green, pepper extracts
(oil/oleoresin)
• India is largest producer, consumer & exporter
• Production – 40-50 000 tonnes annually
• Exports – 28 750 tonnes; USA (largest buyer), UK,
Germany, Italy, Canada, Australia
• Blacklisting of Indian black pepper by USA in
late 80s/ early 90s
Strategic Responses
Proactive
• Anticipate needs
& comply ahead Comply
of time
• Participate in
developments
(standards)
• Anticipate
requirements &
leave particular
markets
Voice
Exit
Reactive
• Wait for imposition
of requirements &
then upgrade
• Complain when
stringent conditions
applied
• Wait for
requirements and
give up
Reactive initiatives
• Blacklisted in 1987 - 20/60 consignments detained
due to presence of filth
• Problem analysed – causes poor post harvest, farm
storage, cleaning & grading practices
• Extensive discussions with USFDA– decided to lift
automatic detention if successful certification
program implemented
• EIC identified as sole Certifying Agency
• All consignments to be tested as/US standards wef
4/5/1988
• Programs implemented at various levels (grower,
post harvest, storage)
• US detentions lifted on 27/01/89, draft MoU signed
b/w USFDA & MoC&I – effective till date
Proactive Initiatives for Export Sector
• Export Sector special focus – WHY?
¾ Builds image of country as prevents inferior Q export
¾ Importing country requirements may be more stringent
¾ Reduces testing time at importing end
¾ Minimize/eliminate rejections at importing end
¾ More cost effective as allows decision on product to be
taken before export (recall, destruction & diversion)
• Regulators, Conformity Assessment, promotional,
trade bodies–all worked together to address issue
• Role of
¾Promotion – Spices Board
¾Quality Control/ Certification – EIC
¾Trade
Trade
• Expanded to move up the value chain to
manufacture products including pepper extracts
(pepper oil, pepper oleoresin)
• Focused on non-price factors – quality, packaging,
safety, winning customer loyalty, addressing
voluntary standards
• Implementing GMP/GHP, quality/ food safety
systems
• Technology upgraded – super critical extraction,
cryo grinding, steam sterilization
• Automation in storage – no hand touch, material
handling equipment, cold storages
GAP/GHP/GMP Some aspects
• GAP in primary Production
¾ Plants varieties having high yield & good quality selected
¾ Recommended agronomic & plant protection practices
followed
• GHP/GMP in processing
¾ Hygienic systems for separation of berries from spike
¾ Berries dipped in boiling water for 1 minute before sun
drying (reduces microbial load & dust)
¾ Drying on raised platforms with bamboo or canvas
sheets or clean cement concrete
¾ Drying yard protected from birds, animals & rodents
¾ Winnowing to clean produce
¾ Storage in clean gunny bags, suitable containers with lids
¾ All containers/ products/ m/c placed away from floor
Spiral cleaning
Promotional Activities by Spices Board
• Financial support & assistance:
¾ Adoption of high tech methods in spice processing
¾ Setting up/ upgradation of labs
¾ ISO/HACCP certification
¾ Product/brand promotion, packaging development,
market development
¾ Participation in trade fairs, conducting market surveys
¾ Printing of promotional literature
• Programmes for aflatoxin & pesticide residue
control
¾ Integrated pest management
¾ Assistance for construction of solar dryers drying yards &
subsidized supply of polythene sheets
SPICES BOARD PROGRAMMES FOR PRE AND
POST HARVEST IMPROVEMENTS
SOLAR DRYING FOR UNINTERRUPTED AND AFLATOXIN FREE DRYING
SPICES BOARD PROGRAMMES FOR PRE AND
POST HARVEST IMPROVEMENTS
CONCRETE DRYING YARD FOR HYGIENIC DRYING
EXPORT QC / CERTIFICATION - EIC
• Importance recognized as early as 1963 & GoI
enacted the Export (QC&I) Act, 1963 – an
umbrella Act governing quality of exports
• EIC set up to advise Government on
measures for sound development of exports
through Quality Control & inspection to include
¾notification of standards
¾certification systems
¾Agencies for QC & I established/ recognised
• EIC operates certification through 5 EIAs at
Mumbai, Kochi, Kolkata, Delhi & Chennai; 37
Sub-offices & labs & other designated CABs
EIC Network
Initiatives by EIC
• Assuring product quality & safety through
implementation of inspection & certification
systems to meet importing country
requirements
• Equivalence Agreements with major trade
partners
• Dialogue with overseas governments on
concerns/ taking up at international fora/
participation in international standards setting
• Capacity Building – strengthening labs,
training manpower
Inspection & Certification - 1
• Product Spectrum
¾Mandatory export certification – 6 items (Marine, egg,
meat, Dairy, Honey, Poultry Meat)
¾Voluntary - notified (nearly 1000 including black
pepper, basmati rice, sesame seeds, hops, herbal )
¾Non GMO certification and Organic certification
• Legal Basis – Notification SO 1311 dtd 22/04/1991
• Systems of Certification
¾Consignment wise Inspection
¾Systems approach - FSMS based approach
(HACCP/GMP/GHP aligned with Codex/EC/US)
- Primary responsibility on processor – develop & maintain
systems; EIC to approve & ensure compliance
Inspection & Certification - 2
• Approval/renewal of units through a 2-level
process (Conditional & final)
• Compliance ensured through 3-tier
surveillance system - Risk based monitoring
• Traceability & Primary production issues –
addressing farms controls, residue
monitoring, awareness programs
• Complaint addressing system
• Testing as per latest technology, equipment &
systems reqts (Pesticide/antibiotic residues,
heavy metals, microbial, aflatoxin, water)
SOME FIGURES
Units approved : Total - 548
• Marine - 368; Dairy – 55; egg – 3; Poultry – 4;
Honey – 2; Rice – 6; others (ice plants, cold
storages, etc) – 70; Non-food - 32
• Black pepper :
¾IPQC - 8
¾CWI – 40
• Oleoresin – 9
• Consignments inspected – 1370, quantity 13885
metric tonnes
• Rejections - 151 mt ie 1.09% before export (as
against 50% in initial stages)
• No rejection at importing end
RECOGNITIONS-1
• EC - Designated CA for marine products &
basmati rice; dialogue on for dairy, egg, poultry
• USA (USFDA) - recognized for Black Pepper – no
detention if accompanied by EIC certificate;
• Singapore – MRA in area of food & agri, electrical
& electronics, drugs, telecommunication
• Australia (AQIS) - recognized for marine products
• Sri Lanka (SLSI) - recognized for >100 regulated
prods (food, cement, engineering/electrical, etc)
• Japan – recognized for poultry products October
2005
RECOGNITIONS -2
• Italy – fish & fishery products
• Turkey – recognized EIA health certificates for all
food items, stainless steel utensils & packaging
material for foods
• S.Korea (KFDA)- recognised for food/ agri prods
• China – Agreement on Iron ore signed 21/12/2006
• Nepal – all agriculture & food products
• Others - EU (Germany, UK), Israel, Bangladesh,
S.Arabia, Libya, Pakistan, Mauritius, Indonesia,
Malaysia, Russia, Japan
CAPACITY BUILDING
• Systems Upgradation
¾Streamlined existing schemes in line with int reqts
¾Developed RMPs in line with reqts of importing
countries
¾Monitoring risk-based
• Upgrading CA Infrastructure
¾Legislative framework
¾Infrastructural facilities
9Laboratories (equipment/methods/systems, manpower)
9Computerization
• Upgrading Manpower: Trainings – 10th Plan
¾ Exporters :
48 Programs; 3211 participants
¾ Own manpower :58 Programs; 1187 participants,
IMPACT OF MEASURES
• Increase in exports
Pepper
– 2003-04
– 2006-07
Quantity
(tonnes)
Value
(Rs million)
16,635
28,750
1427.7
3062.0
5,133
6,250
3799.2
5107.9
Oils & Oleoresins
– 2003-04
– 2006-07
• Access of Indian products in foreign markets
• Reductions in rejections
• Streamlining exports through MoUs/ MRA/
Equivalence Agreements – USA example
• Helping industry build up facilities indirectly
through constant monitoring of requirements of
infrastructure, HACCP
ANY QUESTIONS ?
EIC Website – www.eicindia.org