New U.S law worries Indian exporters
The Indian government voiced concern that proposed US legislation that requires mandatory inspection…The Indian government voiced concern that proposed US legislation that requires mandatory inspections and audits for agricultural imports, will raise costs for Indian exporters.
“The Agriculture Ministry, at a recent dialogue on plant and animal health with US officials, has already pointed out the difficulty that exporters would face if all consignments were to be inspected by U.S Food and Drug Administration officials. India wants either the law to be repealed or some relaxations made in terms of allowing Indian agencies to carry out the inspection,” a Commerce Ministry official said.
The Act requires large-scale exporters to register themselves with the USFDA for inspection and audits by 2017 and medium- and small-scale exporters in the following two years respectively.
India's agriculture exports to the U.S is already declining, with only $2 billion last year compared with $3.7 billion in 2013 due to overall slowdown and decline in prices.
New Delhi said that if the US goes ahead with the law it should have a confirmatory assessment system, whereby a certification of quality given by India’s local standards bodies such as the Export Inspection Council (EIC) or Food Safety and Standards Authority of India (FSSAI) should be recognised.