US Rejects 15 Mango Shipments from India, Exporters Estimate Losses of $500,000
India’s mango exports to the United States have faced a significant setback as authorities rejected 15 shipments due to documentation issues. The rejections, occurring at major US airports including Los Angeles, San Francisco, and Atlanta, have forced exporters to either destroy the fruit or return it to India. Given the perishable nature of mangoes and the high costs of re-export, all shipments were disposed of locally, resulting in an estimated $500,000 in losses.
Documentation Flaws Lead to Rejections
The US authorities cited inconsistencies in the documentation related to the mandatory irradiation process, which is required to eliminate pests and extend the shelf life of mangoes. The irradiation treatment, conducted at a facility in Navi Mumbai, was completed on May 8 and 9. However, US officials found discrepancies in the pest-control documentation, which is essential for the export process. The errors were administrative rather than indicative of any actual pest presence.
A USDA communication to an affected exporter stated that the shipment was rejected due to an incorrectly issued PPQ203 form. The notice specified that the shipment must be re-exported or destroyed, with the US government not covering the costs of remedial measures. One exporter expressed frustration, stating, ‘We are being penalised for mistakes made at the irradiation facility.’
Exporters Face Significant Losses
Exporters faced a difficult choice between destroying the fruit or sending it back to India. The perishable nature of mangoes and the high costs of return shipping meant that the only viable option was local destruction. The estimated losses of $500,000 highlight the financial impact of the documentation errors on Indian exporters.
Trade Deal Negotiations Continue
Despite the setbacks, India and the United States are in the early stages of negotiations for a trade deal. US President Donald Trump has claimed that India has offered a deal with ‘literally no tariffs’, which could significantly boost bilateral trade. The first phase of the deal is expected to be completed in the coming months.
India aims to reduce tariffs on sectors such as textiles, gems and jewellery, leather goods, garments, plastics, chemicals, shrimp, oil seeds, grapes, and bananas. In return, the United States seeks reduced duties on industrial products, automobiles, wines, petrochemical products, dairy items, and agricultural produce such as apples and tree nuts.
A Bloomberg report indicates that India is looking to finalize a three-phase trade deal with the US ahead of July when Trump’s reciprocal tariffs become effective. The deal could enhance two-way trade and strengthen economic ties between the two nations.
APEDA and MSAMB Respond to Inquiries
The Agricultural and Processed Food Products Authority (APEDA) has acknowledged the issue, stating that the matter pertains to the shipment of mangoes from a USDA-approved facility in Mumbai. However, the Maharashtra State Agricultural Marketing Board (MSAMB) did not respond to the inquiry.
The incident underscores the challenges faced by Indian exporters in meeting the stringent documentation and regulatory requirements of the United States. As the trade deal negotiations continue, the rejection of mango shipments highlights the importance of clear communication and coordination between the two nations.