India spice exports at stake on EU aflatoxin scare

KOCHI(Commodity Online): Aflatoxin contamination in spices exported from India is an issue that can have serious repercussions for the exporting community and farmers. Spice containers, if ever rejected for the presence of aflatoxin can send shockwaves across the global commodity markets, given that India is a major exporter.

“The image of India as a genuine source of spices is at stake”, says Gulshan John, Managing Director of Harmony Spices.

“There are some spurious players in the market and close to 95% of past rejections of consignments was due to them.” he said.

“Now every second container of Spices exported from India is being tested for aflatoxin content. This has added to the export costs in the form of additional accruals in port fees and payment delays.”

The sent consignments being under the scanner, there would be delays experienced in the ports which entail extra costs. Also, unless various lab tests are completed to satisfaction, the payment from buyers would be kept in limbo.

“These issues can affect the competency of export players, though it will not make exports unviable.”, he added.

“There is also the question of clarity with regard to EU measures. The authorities till date have not given an answer if the aflatoxin norms are specific to India or applicable to all.”

Aflatoxin is among the most carcinogenic substances (substances that can create cancer) known. It sprouts on spices like chilli, turmeric, ginger and nutmeg and can be causal in rejection of exported spices. Aflatoxin generally develops when spices are not handled according to standard farming and manufacturing practices.

The Spices Board of India, along with World Spice Organisation has initiated awareness campaigns at nutmeg growing areas in India to battle the aflatoxin menace. The objective is to control aflatoxin contamination through farm practice improvements.

Background

An audit was carried out by European Commission Food and Veterinary Office from February 1 to 10, in India to assess the systems in place to control aflatoxin contamination in spices intended for export to the European Union (EU).

This audit was included in the FVO’s 2010 inspection programme due to the high volume of exports of this commodity to the EU and the increase in notifications via the Rapid Alert System for Food and Feed (RASFF) in 2010.

[The Rapid Alert System for Food and Feed (RASFF) was put in place to provide food and feed control authorities in Europe with an effective tool to exchange information about measures taken responding to serious risks detected in relation to food or feed. Countries in EU are also members of RASFF.]

The following spices were identified by RASFF with aflatoxin contamination: Capsicum spp (dried fruits thereof, whole or ground, including chillies, chilli powder, cayenne and paprika), nutmeg, ginger and turmeric.

The audit report said, “Implementation of good agricultural practices (GAP) and good manufacturing practices (GMP) on the premises of spice growers and spice processors is not sufficiently supervised by the CAs (Competent Authorities). Instead, the main focus of attention in India is on aflatoxin controls prior to export...”

The issue

“Nutmeg is widely used by manufacturers in food application and medicine as whole spices, oils and oleoresins, and is facing severe quality issues, and rejection at ports due to aflatoxin contamination. Aflatoxins have negative health effects, and reduce the marketability of the produce, particularly in international trade (due to stringent standards of permissible limits).” says the World Spice Organisation website.

“Now-a-days, given the issue, every second container of spices exported from India is being inspected by concerned authorities in Europe. This has affected Indian exports of Spices.” adds Jojan Malayil, CEO, Bafna Enterprises; a major spice industry player.

“Now it is the government labs in EU that are carrying out lab tests for aflatoxin” he said.

The EU generally follows stringent standards when it comes to aflatoxin contamination. The EU approved limit is 5ppb (parts per billion) of aflatoxin in a given sample while in US it is 20 ppb.

“So, there is a lack of harmonisation in standards.” he added.

But are there double standards, as well?

In case of nutmeg, the Indonesian government told the EU that it may not be possible to comply with the stringent EU demands.

“Finally, the EU gave in to Indonesian demands and decided to accept Indonesian standards! Now the same EU wants India to comply with European standards.”—Jojan Malayil pointed out the paradox.

Need to implement GAP and GMP

“There is no permanent solution for the aflatoxin issue...”, says Philip Kuruvila, Chairman World Spice Organisation.

One-size-fits-all may not work, he believes.

“Of course, prevention is better...The issue has to be addressed at the farm level....India should follow standards when it comes to producing spices. It may not be difficult to comply with EU standards. Then we can take up the issue with WTO and ask them for harmonisation in standards, globally.” added Philip Kuruvilla.

But standards are prone to change as the local laws are susceptible to fluctuations.

“The only way is to adopt Good Agricultural Practises and Good Manufacturing Practises.” says, J.Thomas, Director Research India Spices Board. The board has initiated a number of activities in this regard.

Further, there are players like 'Plant Lipids' who claim to have taken advantage of the situation prevailing. “We have been very vigilant. We could maintain the standards better than many other players. And that has given us some leverage” Says Mathew Attokaran, Director of the company.

“Genuine industry players are all geared up to meet the challenges posed by the norms.” says Gulshan John.

The EU on its part should encourage and educate buyers in their country to opt for products from genuine players, he added.

As published in: http://www.commodityonline.com/news/India-spice-exports-at-stake-on-EU-aflatoxin-scare-40781-3-1.html