Nearly 500 containers of Indian groundnut shipments have been stranded at Haiphong port in Vietnam following the detection of groundnut seed beetle ( Caryedon serratus ) in the consignments.

The presence of the beetle has resulted in the Far-East nation issuing a circular on February 6 this year to suspend imports from India. The suspension will come into effect from April 7 if immediate corrective measures are not taken by India. Exporters fear that with another 100-odd containers reaching Vietnam by the end of the month, ₹120 crore worth of groundnut could be held up there.

“Buyers are not responding to our call to get the shipments cleared from Haiphong. Clearance by Vietnam Phytosanitary authorities is tardy and not more than 20 containers are being cleared on a day,” said Saravanan L, Chief Executive Office of Chennai-based Agrocrops Exim Ltd.

The Vietnamese are clearing the consignments with great care since they fear that the beetle, which can get into the shell and damage the kernels, could affect their rice crop, the mainstay of its agriculture.

Groundnut exports to Vietnam are down to almost half in the last two months, while overall shipments have also dropped, sources said.

According to the Agricultural and Processed Food Products Export Development Authority, groundnut exports are up at 5.92 lakh tonnes (lt) during April-January period of the current fiscal against 4.07 lt in the same period a year ago. Value of shipment increased to ₹38,304 crore from ₹26,255 crore.

Saravanan said that Indian phytosanitary authorities have been alert to the situation and had suggested corrective measures such as fumigation.

“Our authorities have come up with new rules on fumigation levels. But they will have to hold discussions with Vietnam to solve the issue and ensure smooth trading. Vietnam buyers made some efforts to have the suspension revoked but in vain,” said Saravanan.

“I even have a buyer who has paid ₹1.8 crore as advance to buy groundnut but is not answering my calls,” he said.

Vietnamese buyers seem to be clueless as they unable to get their consignments cleared quickly. The suspension by Vietnam has percolated to the farm level also, with farmers in Gujarat’s Saurashtra region raising an alarm. They fear prices could drop. This could lead to lower acreage during summer sowing of groundnut that is currently on.

“Rejected groundnut consignments will add to local supplies, thereby suppressing prices. Farmers expected a good season with robust exports this year. In contrast, there is a glut leading to fall in prices,” said Ramesh Bhoraniya, a groundnut and cotton farmer from Rajkot district.

Around the same time a year-ago, farmers were getting about ₹98 for a kg of hand-picked and selected groundnut. There was good demand then. This year, prices are down to ₹55-60.

“Prices could drop further to levels of ₹40-45 if the situation continues,” said an industry source.

Sources say it will take at least a few months for the suspension to be lifted. This is because it will take time to hold a high-level meeting to sort out the issue.

However, industry sources say that the Ministry of Commerce can take up the issue on a war-footing and try to solve it.

(With inputs from Rutam Vora, Ahmedabad)

Related Topics
comment COMMENT NOW