Sri Lanka to set up facility to test and approve food exports to India
Sri Lanka’s Export Development Board (EDB) has stated that local exporters will soon be able to have their food exports to India tested and approved locally prior to shipping, saving both costs and expenses incurred by delays and rejections at Indian ports.
The EDB has reportedly stated that a Memorandum of Understanding (MoU) is scheduled to be signed between Indian and Sri Lankan authorities for this purpose next month.
Under this MoU, Sri Lanka’s food laboratories will be accredited by India and its results will therefore be accepted by the Food Safety and Standard Authority of India (FSSAI).
Speaking to The Sunday Morning Business, an EDB official has said the MoU is all set to be signed between the Food Control Unit of Sri Lanka’s Ministry of Health and the FSSAI.
“This year, the delay was due to the laboratories in Sri Lanka undertaking required preparatory works, and changes in the FSSAI management delayed India’s side,” the source has been quoted as saying.
The MoU was discussed as part of the Economic and Technology Cooperation Agreement (ETCA) which was set to be signed in November last year.
The MoU with FSSAI is to be signed as planned as it would not be a part of ETCA nor be dependent upon its signing. The Food Control Unit is the responsible organisation for the FSSAI-accredited labs in Sri Lanka.
Currently, there are several barriers for Sri Lankan food exports at India’s Port of Entries.
India has traditionally not recognised the certificates issued for processed food items by Sri Lankan laboratories.
The EDB has stated that is expects a rise in Sri Lanka’s food exports to India following the implementation of this agreement.
OSL take:
Sri Lanka and India enjoy strong bilateral and trade ties that have been further strengthened by the free trade agreement (FTA) between the two nations. The close proximity between the two countries , the ease of doing business environment in Sri Lanka and the trade ties enjoyed by the island with other foreign countries has made Sri Lanka an attractive business destination to many Indian businesses/investors. Also, the FTA between the two countries have helped Sri Lankan exports reach the Indian market easily and the preferential treatment enjoyed by Sri Lanka in trade are areas that could be easily utilized by foreign businesses/investors looking at doing business with India. Such entities could explore the possibility of setting up base in Sri Lanka to engage with business in India.
| Article Code : | VBS/AT/26082019/Z_4 |