Lok Sabha Question No. 4301 (UNSTARRED), answered on 2019-01-07
Subject: Losses Suffered by Grape Farmers and Exporters
Ministry: COMMERCE AND INDUSTRY
Asked by: HARISHCHANDRA DEORAM CHAVAN

## GOVERNMENT OF INDIA MINISTRY OF COMMERCE & INDUSTRY (DEPARTMENT OF COMMERCE)

## LOK SABHA UNSTARRED QUESTION NO. 4301(H) TO BE ANSWERED ON  07 th  JANUARY, 2019

## LOSSES SUFFERED BY GRAPE FARMERS AND EXPORTERS

## 4301(H). SHRI HARISHCHANDRA CHAVAN:

Will the Minister of COMMERCE & INDUSTRY ( वा ͨणÏय एवं उɮयोग मंğी ) be pleased to state:

- (a) whether the Government has taken note of the losses suffered by the grape farmers and exporters during 2010;
- (b) if so, the details thereof along with the reaction of the Government in this regard;
- (c) whether  the Agricultural  and  Processed  Food  Products  Export  Development Authority has submitted any estimate to the Government in August, 2018 regarding compensation for the losses suffered by grape farmers and exporters in 2010;
- (d) if so, the details thereof; and
- (e) the action taken/efforts made by the Government to compensate the losses suffered by the grape farmers and exporters till date?

## ANSWER

okf.kT; ,oa m|ksx ea=ky; esa jkT; ea=h ¼Jh lh- vkj- pkS/kjh½

THE MINISTER OF STATE IN THE MINISTRY OF COMMERCE AND INDUSTRY (SHRI C. R. CHAUDHARY)

- (a) Yes, Madam.
- (b) Some exporters have reported of losses due to rejection of consignments by the European Union in 2010. The rejection happened on account of detection of Chloromaquet Chloride (CCC).  The  Agricultural  &  Processed  Food  Products  Export  Development  Authority (APEDA), in consultation with National Resource Centre (NRC) for Grapes, Pune, had introduced  a  Residue  Monitoring  Plan  (RMP)  for  Grapes  in  2003-04,  which  requires mandatory pre-shipment testing for  residues,  for  grapes export to  the  European Union. To  make  it  cost  effective,  NRC  had  limited  the  number  of  chemicals  for  pre-export testing and CCC was not on the list of chemicals for the RMP testing. In 2010, the EU suddenly  enforced  the  testing  with  regard  to  presence  of  CCC  and  a  number  of  grape consignments were rejected by the EU due to its presence.

The Residue Monitoring Plan (RMP) was introduced, in the face of an imminent ban by the  EU  due  to  detection  of  pesticide  residues  in  grape  consignments.      The  RMP  was introduced  to  streamline  the  exports  and  to  minimize  the  chances  of  rejections  due  to detection of chemical residues. The testing under the RMP was done for only a limited number of chemicals through a random sampling process prescribed by the NRC, Grapes, Pune,  with  a  view  to  limit  the costs.  This  process  does  not  absolve  the  exporters  from

- meeting  the  standards  required  by  EU,  which  prescribe  limits  for  more  than  400 chemicals.
- (c & d) Based on the FOB cost analysis done by the Government of Maharashtra/ NRC - Grapes. APEDA  had  submitted  an  estimate  of  Rs.9.61  crores  for  the  losses  suffered  by  the exporters.
- (e) The matter was taken up with the Ministry of Finance and on their advice was referred to the Office of Adviser Cost for verification of claims. The Office of Chief Adviser Cost, have  advised  to  refer  the  matter  to  the  Commission  of  Agricultural  Costs  &  Prices (CACP) for analysis of cost of production.

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