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Our Bureau

Chennai , April 21

EXPORTS of agricultural goods to Malaysia are facing problems following the implementation of phytosanitary regulations by Kuala Lumpur.

"The phytosanitary regulations are being implemented in a discriminatory manner for imports of maize (corn), soyameal and rice from India, China and Thailand," trade sources told Business Line.

These measures have been implemented even as Kuala Lumpur is seeking increased access for its palm oil into India. Malaysia has been demanding that India cut customs duty on crude and refined palm oil to the level of soyabean oil.

Import duty for soyabean oil is 45 per cent, while it is 65 per cent for crude palm oil. Refined, bleached and deodorised palm oil and other refined oils attract 70 per cent customs duty.

India is importing soyabean oil from the US and Latin American nations. It imports considerable amount of edible oil to make up the demand-supply gap. During 2002-03 oil year (November-October), India imported a record 51 lakh tonnes of edible oil. This year, it is expected to be lower at 41 lakh tonnes, thanks to bountiful domestic oilseed production.

According to trade sources, imports of maize, soyameal and rice to Malaysia from India now need special requirements such as fumigation certificate with the name of the vessel and that the cargo has been fumigated with methyl bromide or phospine gas.

Imported agricultural goods also require phytosanitary certificate containing the vessel name besides details of fumigation treatment, date and its dosage.

The details in both phytosanitary and fumigations certificates should tally. Also, the certificates, which should be produced in original, should have the consignee name

However, importers from Thailand and China are exempt from producing the original certificates.

"Indian exporters are hurt as the journey time from India to Malaysia is only five days and it is impossible to get all the documents in place, especially if the shipments are made by multi-national firms and Singapore traders. Exporters have to incur heavy demurrage at the port of discharge," the sources said.

"Palm oil exports from Malaysia to India too face the same problem but Indian Customs authorities are more flexible," the sources said.

Official sources said agricultural goods exports to Malaysia did not face much problem, though there were some rough edges to be sorted out.

"There are problems here and there. In particular, we have problem in exporting buffalo meat and poultry products," the sources said.

But trade sources said Malaysian authorities, like India, should be flexible in accepting photo copy of documents.

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