• Investment World
• eWorld
• Brand Line
• Mentor
• Life
• Canvas
• Praxis
• Urban Pulse
• Brand Quest
• The New Manager

Stocks

• Quotes
• SE Diary
• Scoreboard
• Open-End Mutual Fund

Cross Currency

• Rates
  
  

Shipping

• Ports
  
  

Archives

• Yesterday
• Datewise
• Resources

Group Sites

• The Hindu
• Business Line
• Sportstar
• Frontline
• The Hindu eBooks
• The Hindu Images

M.R. Subramani

TROUBLED IMPORTS: Fumigation stipulations are a matter of concern for the pulses trade.

Chennai , May 23

The Plant Quarantine (Regulation of Import into India) Order, 2003 has a stipulation that all imports of agricultural produce be fumigated with methyl bromide.

However, the global trade, specially the developed nations, is agitated over this stipulation. The reason: Methyl bromide is forbidden in developed nations, following an undertaking given by them under the Kyoto Protocol, an UN framework convention on climate change. The protocol binds nations to undertake measures to prevent global warming and green house gases. The developed nations have stopped using the chemical since January 1, 2005.

Tender norms

Last week, the State Trading Corporation (STC) changed the tender norms for import of 30 lakh tonnes of wheat duty-free, allowing consignments to be fumigated with methyl bromide on arrival at the port of discharge. Earlier, it said fumigation could be done on the way to Indian shores.

In its first tender to import five lakh tonnes wheat in February, it insisted on fumigation at the port of loading.

Why is India insisting on fumigation with methyl bromide at warm climates? One, it is seen as the most effective way to kill all pests, insects and nematodes. Two, substitution is a costly proposition and a tricky one in colder climates. Instead of methyl bromide, aluminium phosphide can be used as a fumigant. But what can be done in 16 hours with methyl bromide takes three days with aluminium phosphide and the cost also increases three times.

Non-tariff barrier?

"Why can't India seek a certification that a consignment is free from any pathogen? Why insist on methyl bromide fumigation?" asked a foreign delegate at recently-concluded CICILS 2006 convention on pulses in Goa. An Indian importer, however, justified, saying it was one way of non-tariff barrier on the developed nations, which imposed several curbs on Indian products. India has been able to put off the ban on methyl bromide on its shores on the ground that it is a developing nation. That gives New Delhi time until 2015 to replace methyl bromide.

The issue of India's Plant Quarantine Order figured at the World Trade Organisation (WTO) with the US and European Union complaining that India did not notify the order until March 2004. The European Community, Canada, New Zealand and Chile supported them. These countries also complained that they were not given the mandatory 60 days time to respond to the Indian order. India contended that it need not notify it at WTO as it conformed to world standards but the European Union did not agree. In between, a Canadian pulse consignment was rejected for not being fumigated with methyl bromide.

Following talks between both the countries, the deadline of allowing ships that brought agri products without methyl bromide fumigation was extended to April 30,2004. "There are two ways of tackling this. One is through the Sanitary and Phyto-Sanitary panel of WTO. The other is through bilateral agreements. India, however, has assured to simplify the plant quarantine regime," says Mr Guy Cordet, Secretary-General, CICILS. CICILS is the French acronym for International Pulses Trade and Industry Confederation.

More Stories on : Insight | WTO | Standards & Benchmarks | Pests

Article E-Mail :: Comment :: Syndication :: Printer Friendly Page

Stories in this Section
MCX imposes special, additional margins

Copyright © 2006, The Hindu Business Line. Republication or redissemination of the contents of this screen are expressly prohibited without the written consent of The Hindu Business Line