October 23, 2025

Hold your peanuts, because a fiery trade issue is shaking up India-Indonesia groundnut exports! Indonesia slapped a sudden ban on Indian groundnuts from September 3, after spotting aflatoxins — toxic molds lurking in the crops. This sent shockwaves, as Indonesia usually imports a massive one-third of India’s groundnut exports. In 2024, Indonesia bought 2.77 lakh tonnes worth $280 million out of India’s 7.46 lakh tonnes shipped globally. But wait! India isn’t taking this lying down. Abhishek Dev, Chairman of the Agricultural and Processed Food Export Development Authority (APEDA), revealed that Indonesia answered India’s pleas and is sending a team to visit by the end of October. This team will inspect Indian groundnut facilities to check the safety and export processes in person. Exporters and trade experts are up in arms about Indonesia’s move. "No one is sure how the groundnut was stored for three months, and the facilities available in the warehouses. We are unable to accept a decision taken three months after consignments land at the ports," said a New Delhi trade analyst. The problem? Indonesia’s quarantine authority (IQA) flagged aflatoxin issues months after the shipments arrived, causing a delayed ban. Another fuel to this fire is the difference in testing methods. India’s APEDA uses a 20 kg sample for aflatoxin testing, while Indonesia uses only 1 kg — quite a difference! Exporters argue that Indonesia’s system doesn't match World Trade Organization standards. The stakes are high. This ban could cost India around ₹410 crore (₹46.65 million) in just two months, hitting farmers and exporters hard. The kharif groundnut harvest is just starting, with production estimates steady at about 46 lakh tonnes, despite more land being used. But current market rates are low, around ₹4,885 per quintal, compared to the government’s ₹7,263 minimum support price. This is not the first time Indonesia has paused imports due to aflatoxins. In 2022, they halted shipments over lab registration issues and toxin levels. After that, APEDA issued a strict advisory in April 2025, asking labs to follow exact procedures for sampling and testing to avoid such export surprises. Will this Indonesian visit smooth things out? India hopes so, eager to keep this crunchy trade alive and sizzling. As the trade battle unfolds, all eyes stay glued on the upcoming inspections and whether India’s groundnut exports can break free from this sticky situation soon.

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Tags: India groundnut exports, Indonesia import ban, Aflatoxins, Apeda, Groundnut trade, Food safety,