United States Food and Drug Administration (FDA) has recently disclosed data on food imports over the past four years. Among the nations engaged in food exports to the US, India, Mexico, and China have experienced the highest incidence of refusals.The data highlights the hurdles faced by Indian food exporters in the American market. High refusal rates continue to be a pressing issue.
Key Aspects Related to India’s Food Export Rejections in the United States
Refusal Statistics: India, Mexico, and China
- Between October 2019 and September 2023, India, Mexico, and China experienced significant refusals of food export shipments to America.
- India’s refusal rate, which measures the percentage of shipments refused out of all food export shipments, was 0.15%.
- In comparison, China’s refusal rate was 0.022%, and Mexico’s was 0.025%.
- India’s rate is substantially higher, signaling a higher incidence of refusal relative to the total exports.
Majors Factors Behind Refusals
- The products consisted in whole or in part of a filthy, putrid, or decomposed substance or be otherwise unfit for food.
- The products contained Salmonella, a bacteria that causes severe stomach infections.
- The products used an unapproved new drug, an unsafe food additive, or a prohibited substance.
- The products were misbranded in terms of nutritional labels, ingredients information, or health claims.
Long-Term Trends in India’s Refusals
- In the last decade, India’s food export refusals have seen a downward trend in absolute terms. From a peak of 1,591 refusals in 2015, it decreased to 1,033 refusals in 2023.
- Despite these refusals, India’s food exports to the US stood at USD 1.45 billion in FY23, representing a 16% increase from the previous fiscal year. Key exports included basmati rice, natural honey, guar gum, and cereal preparations etc.
International Measure Backing the Food Import Refusal By the United States
- The World Trade Organization (WTO)’s Sanitary and Phytosanitary (SPS) Agreement ensures that traded products between WTO members do not spread pests and diseases, and that food products do not contain harmful substances or pathogens.
- The “SPS Agreement” entered into force with the establishment of the WTO on 1 January 1995.
- WTO has 164 member nations (including India and the United States).
- Members have the right to implement sanitary and phytosanitary measures for the protection of human, animal, or plant life and health, provided such measures align with this Agreement.
- Measures should be based on scientific principles and supported by scientific evidence, except as provided in Article 5(7) of the Agreement.
- Measures should also not discriminate unfairly between Members and should not serve as a disguised restriction on international trade.
- Members must accept equivalent sanitary and phytosanitary measures from other Members, even if they differ.
- The exporting Member must prove that its measures meet the importing Member’s required level of protection.
- Access for inspection and testing should be provided upon request.