As we know, the Agricultural and Processed Food Products Export Development Authority (APEDA) certifies the organizations for product exports. The organic products for export get authorization under APEDA Registration. In this article, we will discuss the news of the USDA ending 15- year agreement with Apeda and its consequences.
Brand-new Strategy of USDA
As per the USDA, the USDA’s Agricultural Marketing Service (AMS) determined that India’s more aggressive oversight role was essential to “directly protect organic integrity.” That’s why US National Organic Program (NOP), certifying organic operations in India, will now have an 18-month transition period to get USDA certification.
This new approach will be active from July 11. It means from July 12 of next year, and every Indian exporter needs to have USDA organic certification from a certifier to export products.
USDA Official regarding USDA ends 15-year agreement with Apeda
A USDA spokesperson explains that the USDA did not have direct compliance authority over many of India’s organic certifiers and operations supporting the 2006 agreement.
Therefore, The new approach will authorize certifiers having APEDA Registration to apply to the NOP for direct accreditation to USDA organic standards.
What will be its Impact?
Organic goods exporters estimate that the change in the certification system will lift the cost for all stakeholders, starting with farmers. In addition, there will be more paperwork.
Some experts also conclude that this step might reduce exports and benefit US Companies there to produce organic products in the country.
Understand the news of USDA ends 15-year agreement
According to the USDA and India’s Ministry of Commerce, India is the major merchant of organic goods for the US. While the fiscal year 2018-19, the total import of goods was 3.34 lakh tonnes (lt). It’s value $2,922 crore ($429.70 million).
Moreover, in a study on the Indian Organic Foods Market, the USDA Foreign Agricultural Service states that India is home to 30% of the world’s total organic producers having certification.
As per the Indian Department of Commerce, The total field under organic certification in India till march 2019 was more than 3.43 million hectares, with 1.94 million hectares under cultivable area and the rest under wild harvest area.
Therefore, analysts at USDA estimate that Our protocols are ten times stricter than US NOP guidelines. Nonetheless, in his opinion, most of them are redundant. The reason is it is concerning with the process than with whether or not the products are grown organically.
Acknowledge about APEDA Registration
Agriculture and Processed Food Products Export Development Authority(APEDA) is the establishment by the Ministry of Commerce and Industry.
Starting from 1986, it works for Indian Farmers and Exporters, providing them many advantages. Exporters must get APEDA Registration to export the organic products.
Moreover, you require any kind of guidance related to the APEDA Registration, please feel free to contact our business advisors at 8881-069-069.
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