"The EU had asked us to set up a system to check the quality of peanut exports by December 31, 1998. We have asked peanut exporters to register their contracts with APEDA (Agricultural and Processed Food Export Development Authority) along with pre-shipment quality certificates," SM Acharya, joint secretary in the commerce ministry said. Aflatoxin is a micro-organism which makes the nuts powdery and some of the peanut consignments were found to have a high aflatoxin content.

APEDA, which has been entrusted with the responsibility to monitor quality of peanut exports, has come up with elaborate procedures besides nominating laboratories for testing and certifying aflatoxin content in peanuts meant for exports. Once thecountry had set up the mechanism to monitor the quality of peanut exports, there had been no further complaints from EU, Acharya said. EU had planned to suspend peanut imports from India and Egypt for four months for higher incidence of aflatoxin.

The measures to suspend imports of any foodstuff are taken on grounds of food safety. The European Commission (EC) has stipulated the permitted levels of toxic micro-organisms in foodstuff. In addition to peanuts, India's spices exports have also come under threat due to high presence of pesticide residue. Commerce secretary PP Prabhu told a national conference on agriculture for kharif campaign last month that the issue of pesticide residue was worrying government as trade partners like EU had threatened to ban such imports. Acharya said the Spices Board had been asked to enlighten exporters about measures to reduce the pesticide residue. Any ban or suspension on grounds of food safety are permissible as per World Trade Organisation (WTO) norms if the decisionsare not taken arbitrarily.