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Cost of complying with EU standards high, says FICCI
Our Bureau
New Delhi
,
March 21
Indian exporters to the European Union (EU) are finding it increasingly difficult to comply with the EU's product and process standards, according to the survey carried out by the Federation of Indian Chambers of Commerce and Industry (FICCI)..
The survey reveals that in certain cases the cost of complying with EU standards is as high as 65 per cent of the total production cost of the goods. Exporters of a wide variety of products such as grapes, chillies, machinery, textiles, switchgears, refrigerators, mango and chemicals have said that the high cost of certification for complying with EU standards and the lack of availability of certifying agencies in the country to issue such certificates is making it difficult for them to export to the EU.
The survey shows that for agricultural items, especially fruits, Indian exporters are required to have a number of certificates such as the EurepGap Certificate, British Retailers Consortium (BRC) Certificate, Codex, HACCP and ISO 9001 Certification.
FICCI has worked out the cost to obtain a EurepGap Certificate, which for instance is around Rs 1 lakh per farmer, which it says is high for both small and large size exporters alike.
In the case of textiles and clothing, which are one of largest exporting items to the EU, the survey pointed out that all EU buyers insisted on factory compliance audit certificate related to child labour, work environment, welfare and HR practices, all of which are making exports difficult.
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