Financial Daily from THE HINDU group of publications Friday, Apr 07, 2006 |
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Agri-Biz & Commodities
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Cultivation Industry & Economy - Exports & Imports Certification woes dog organic basmati growers G. Srinivasan
Boiling row Growers shift firm to which they were supplying consignments New company offering better payment for their produce It will now take a year before Apeda considers their certification
New Delhi , April 6 Is the Agricultural & Processed Food Products Export Development Authority (APEDA), charged with the task of ensuring organic product exports from the country, dragging its feet in expediting certification to basmati rice exporters taking refuge under its own convoluted rules and regulations? Farmers of Laksar in Uttaranchal, producing organic basmati paddy, told Business Line that exasperated by the exploitation of a monopoly corporate they decided to shift to another company to arrange for organic basmati rice exports. As these farmers had to acquire the requisite organic basmati certification to reap real farm income, it approached a certification agency recognised internationally. But the certification agency said it required formal communication of discontinuation between the farmers and that company with whom they participated in earlier organic farming. It also sought ano objection certificate from Apeda. So when the new company taking up the organic farming interests of Laksar approached Apeda, the apex body said the certification agency should approach it for getting the NoC and not the corporate. Meanwhile, the farmers of the organic basmati programme also wrote to Apeda directly about their displeasure in persisting with the earlier organisation.
Reasons for change
The sources said the Laksar farmers shifted to the new company as the latter has been closely working with them for over 15 years. They said the shift would boost their farm income, promote fair competition and expose the monopoly in procurement and end the exploitation in input sale to the farmers by the former company. This was borne out by the fact that while the old company gave the organic basmati rice growers Rs 1,300 a quintal, the new firm now gave them Rs 2,200 a quintal, they said. They also felt that their contract with the earlier company compelled them to offload the produce at the specific price put up by it and restricted them from undertaking transaction with other companies.
Inspection
The farmers said the crop of basmati rice was ready for harvest. But as there was no inspection in Laksar area by the certification agencies, it was important to set off the inspection procedure to ensure early certification for effecting exports of their organic produce. The farmers contend that if their plea were not addressed urgently, they would be forfeiting the status of organic basmati production. They urged Apeda to provide NoC to the new company with which the organic basmati paddy of Laksar farmers wanted to associate themselves with and communicate to their former company to share the information concerning the past inspection reports with the new entity.
Red-tapism
The farmers were of the view that the Apeda should brace itself to the tasks of helping organic farmers instead of getting embroiled in bureaucratic and procedural complexities. They also cited a recent mission report of the EU on the effectiveness of inspection measures in organic farming in India and for exports to the EU. The EU report while endorsing that the organic operations appeared to work in equivalence with the EU legislation and inspections by private inspecting bodies were broadly equivalent with the relevant EU rules, observed that the official supervisory system (Apeda) was "in an early stage of development and the competent authority cannot yet ensure the effectiveness and objectiveness of the inspection system". It said organic agriculture could increase the efficiency and sustainability of production by reducing production costs (especially where labour is cheap compared to input costs) and to increase or stabilise yields on marginal soil and to augment product value. But these benefits would be nullified or negated if the official agency does not act in time or has not enough administrative apparatus to take care of the mounting concerns of organic farmers.
APEDA response
When contacted, the APEDA Chairman, Mr K.S. Money, told this correspondent that the two firms had made conflicting claims about the farmers registering with them and that the certifying agencies were at a loss to resolve the issue. He also said when the farmers decided to quit the internal control system (ICS) of one firm, the NPOP norm dictates that they need to have a formal contract with the new ICS manager of another firm they join. "They cannot switch in and out of ICS frequently as it would completely undermine the ICS system; the farmers are unaware of this," he said. He said for establishing a proper ICS again by the new group, it would take at least one year; hence, the certification would be considered only after one year if the NPOP procedure were followed. According to him, APEDA fully recognises and respects the needs of the small and marginal farmers who do not fully understand the intricacies of the group certification system. "It is because of this that the ICS has been established in the NPOP document."
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