Indonesia has announced the suspension of groundnut imports from India effective September 3, 2025, citing non-compliance with quality standards. The move, driven by concerns over high aflatoxin levels, poses a major challenge for India, which counts Indonesia as its largest market for groundnuts.
Key Data: India–Indonesia Groundnut Trade
| Category | Details |
|---|---|
| Suspension Effective | September 3, 2025 |
| Reason | High aflatoxin levels; non-compliance with Indonesian Quarantine standards |
| Accepted Shipments | Bills of lading up to 7 days from order; subject to inspection & retesting |
| India’s Annual Exports to Indonesia | 2.25 lakh tonnes worth $274 million |
| Share of India’s Total Groundnut Exports | One-third |
| Aflatoxin Limit (Indonesia) | 15 ppb (Codex Alimentarius standard) |
| Aflatoxin Limit (EU) | 4 ppb (stricter standard) |
| Past Suspensions | Similar action taken in 2022 |
| Regulatory Response (India) | APEDA stresses stricter monitoring & testing protocols |
Health and Trade Implications
- Health Risks: Aflatoxins, toxic compounds produced by certain fungi, are associated with serious health risks, including carcinogenic effects.
- Trade Impact: With Indonesia accounting for one-third of Indian groundnut exports, the suspension threatens to disrupt a trade flow worth $274 million annually.
- Past Issues: Indonesia’s recurring concerns—this being the second suspension since 2022—underline the urgent need for India to address systemic quality control lapses.
Steps India Can Take to Address the Suspension
1. Strengthen Quality Control
- Upgrade testing protocols and equipment to detect aflatoxins with greater accuracy.
- Train staff and inspectors on advanced testing methodologies.
2. Ensure Regulatory Compliance
- Align testing with Indonesia’s standards (15 ppb) and prepare for stricter benchmarks like the EU’s.
- Introduce regular audits of laboratories and inspection units.
3. Engage Indonesian Authorities
- Initiate diplomatic dialogue to reassure regulators.
- APEDA could set up a dedicated liaison team with Indonesia.
4. Improve Transparency & Traceability
- Introduce end-to-end supply chain monitoring from farms to ports.
- Maintain complete documentation of quality checks for every shipment.
5. Build Awareness Among Farmers & Exporters
- Conduct farmer workshops on preventing aflatoxin contamination during cultivation and storage.
- Train exporters on compliance standards and best practices.
6. Diversify Markets
- Explore new export markets to reduce reliance on Indonesia.
- Focus on value-added groundnut products (roasted, processed, oil) that may face fewer restrictions.
7. Industry Collaboration
- Engage with industry experts to bring global best practices to India’s groundnut trade.
- Create a structured feedback loop for exporters to report challenges.
8. Continuous Monitoring & Reporting
- Publish regular reports on progress in addressing aflatoxin concerns.
- Monitor shipments proactively to avoid further suspensions.
Outlook
The suspension of Indian groundnut exports to Indonesia highlights the critical importance of quality assurance in agricultural exports. While the immediate impact is significant, India can turn this challenge into an opportunity by upgrading testing infrastructure, educating stakeholders, diversifying markets, and building long-term trust with trading partners.
By implementing robust reforms, India can safeguard its $274 million trade with Indonesia, protect farmer livelihoods, and strengthen its reputation as a reliable agricultural exporter.
Glottis Limited 
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