New Delhi: Indonesia has lifted its suspension on Indian peanut imports imposed in September 2025 over excessive aflatoxin levels — a potent carcinogen linked to liver cancer. Yet, Indian exporters remain wary and largely uninterested in resuming shipments, citing heightened risks and stringent new norms.
The ban, enforced from September 2, 2025, stemmed from Indonesia’s Quarantine Authority detecting aflatoxin beyond the Codex standard of 15 ppb in several consignments. Aflatoxins, produced by fungi like Aspergillus flavus in warm, humid conditions, pose serious health risks. Exporters had contested the delayed notification process and questioned Jakarta’s testing protocols.
A Western India-based exporter told BusinessLine that while approvals resumed last month, Indonesia has imposed tough conditions: approved exporters are pruned to around 75, stricter aflatoxin monitoring, geo-tagging, and immediate suspension for non-compliant shipments. Concerns linger over testing labs — some reportedly small-scale with inadequate equipment — and past scrutiny of facilities like one in Chennai.
Indonesia, a key buyer absorbing nearly one-third of India’s peanut exports, imported 2.77 lakh tonnes worth $280 million in FY 2024. The hesitation occurs during a challenging period when India’s peanut prices are declining due to bumper harvests. Gujarat alone recorded a massive output in recent seasons (estimates vary, but production has surged significantly), exacerbating oversupply and farmer distress.
Trade sources warn that without smoother processes and mutual trust, exporters may pivot to other markets like Vietnam or the Philippines. For now, the lifted ban offers little relief, leaving bilateral trade in limbo despite Indonesia’s importance.