Indonesia has officially withdrawn its suspension on peanut imports from India, reopening a trade channel that had been halted due to concerns over food safety compliance. While the decision removes a major regulatory barrier, Indian peanut exporters remain hesitant to resume shipments, citing unresolved issues related to quality inspections, testing standards, and commercial risk.
The suspension, which had been in place for several months, was imposed after Indonesian authorities flagged certain Indian peanut consignments for exceeding permissible aflatoxin levels. Aflatoxins are naturally occurring toxins produced by certain fungi and are considered hazardous when present beyond prescribed limits. Indonesia’s quarantine and food safety agencies stated that the move was necessary to safeguard public health and ensure compliance with national food safety regulations.
Background of the Import Suspension
India is one of the world’s leading producers and exporters of peanuts, supplying markets across Southeast Asia, the Middle East, and Europe. Indonesia has historically been a significant destination, accounting for a substantial share of India’s peanut exports by volume and value. The sudden suspension therefore had a noticeable impact on Indian exporters, particularly those focused on bulk shipments to Southeast Asian markets.
Exporters argue that the ban was imposed despite compliance with internationally accepted quality norms at the point of export. According to industry representatives, Indian peanuts undergo mandatory testing and certification prior to shipment, including checks aligned with global standards. The concern, they say, lies in the methodology and timing of inspections conducted upon arrival in Indonesia.
Exporters Remain Cautious Despite Policy Reversal
Although the Indonesian government has now lifted the suspension and indicated a willingness to resume imports, Indian exporters are not rushing back to the market. Many are adopting a wait-and-watch approach, preferring to prioritize destinations perceived as having more predictable regulatory environments.
One of the primary issues highlighted by exporters is inconsistency in sampling and testing procedures. Industry sources claim that inspection methods used at Indonesian ports differ from widely accepted international practices, raising the risk that otherwise compliant shipments could be rejected. This uncertainty has made exporters wary of potential financial losses arising from detention, re-export, or destruction of consignments.
Another factor contributing to exporter reluctance is delayed communication. In several cases, aflatoxin concerns were reportedly raised weeks or even months after shipments had arrived at Indonesian ports. Exporters argue that such delays complicate traceability and raise questions about storage conditions at destination points, which may also influence toxin levels.
Impact on India’s Peanut Export Sector
The prolonged suspension disrupted trade flows and led exporters to redirect shipments to alternative markets such as Vietnam, the Philippines, and parts of the Middle East. While diversification has helped absorb some of the impact, Indonesia remains an important market due to its large consumer base and consistent demand for peanuts used in food processing and household consumption.
Industry stakeholders stress that rebuilding confidence will require clearer guidelines, transparency in testing protocols, and better coordination between authorities in both countries. Without these measures, exporters believe that the mere lifting of the suspension may not be sufficient to restore trade volumes to previous levels.
Need for Bilateral Engagement and Harmonized Standards
Trade experts suggest that stronger bilateral engagement between India and Indonesia could help address ongoing concerns. Harmonisation of testing standards, mutual recognition of certification processes, and timely sharing of inspection results are seen as critical steps toward stabilising peanut trade between the two countries.
Exporters are also calling for structured dialogue at the government and industry levels to ensure that quality compliance issues are resolved proactively rather than through abrupt trade restrictions. Such engagement would not only benefit peanut exports but also strengthen broader agri-trade relations between the two nations.
Outlook for Indian Peanut Exports
While Indonesia’s decision to lift the import suspension is a positive development, the response from Indian exporters underscores the importance of regulatory certainty in international agricultural trade. For now, shipments to Indonesia are expected to resume gradually, if at all, until exporters gain confidence that quality assessments will be fair, transparent, and aligned with global norms.
The episode highlights the growing importance of food safety compliance in global trade and the need for exporting nations to continuously adapt to evolving regulatory expectations. How quickly India’s peanut exports to Indonesia recover will depend largely on how effectively both sides address the concerns that led to the suspension in the first place.
