Wrong Labels, High Pesticide Residues Holding Back Agri Exports | The Reason Why

When an Indian food shipment is rejected overseas, our instinct says it could be due to poor-quality produce and pesticide residues. But the data reveals something else. Mislabelling accounts for more rejections than pesticide residues.

The United Nations Industrial Development Organisation recorded 3,924 rejection observations for Indian agricultural and food exports in 2024. Labelling accounts for slightly less than one-third, while pesticide residues account for more than one-fifth. Together, they make up more than half of all rejection observations.

The two problems have very different origins. One can be prevented before a product leaves the factory. The other may begin weeks or months earlier, on the farm.

Also Read | Layoffs Are Rising In Tech, But These Skills Are Helping People Unlock Better Pay

I spoke to Ashwin Bhadri, founder and chief executive officer of Mumbai-based Equinox Labs, about why these problems keep recurring. He said that most of us treat compliance as something to check at the end. We need to think about it right at the beginning and embed it in all processes. 

A Safe Product Can Still Be Rejected

A food product can meet the required safety standards and still fail at the border because its label does not meet the importing country's rules.

An allergen may be missing. A product description may be incorrect. A health or nutrition claim may not be permitted. The problem is particularly visible in processed foods. 

A recent analysis by Gunjan Bhandari, Udita Chaudhary and Subhasis Mandal of Indian dairy, egg and honey exports to the US and Australia found 344 recorded rejections between 2010 and 2024. Around 57% were related to labelling, including missing allergen declarations, incorrect product descriptions, nutrition information and claims.

This is a problem that should be relatively easy to prevent. 

READ | World Bank Upgrades India's FY27 Growth Forecast To 7.1%; Says High Energy Prices, El Nino Pose Risk

Residue Problems Begin Much Earlier

Pesticide residues are a different problem because the risk originates much earlier, at the farm.

The rejection data show that residue observations are heavily concentrated in a few product categories. Categories, such as coffee, tea and spices, milling products and vegetables, together account for about 81% of all pesticide-residue observations.

What is sprayed on a crop, how much is used and how close to harvest it is applied can eventually determine whether the shipment clears a foreign border. And the farmer does not always make these decisions based on formal agricultural advice. Studies have found that pesticide retailers become quasi-advisors and an important source of information for farmers.

As Bhadri points out, you cannot control pesticide residues at the export warehouse. Therefore, both farmers and pesticide sellers need better training. If a problem is detected before a shipment leaves India, the exporter can prevent a rejection and avoid the financial and reputational damage that follows. That's where pre-shipment testing comes into play.

Even if these tests detect higher residues, they do not guarantee that the problem will not recur in another shipment. For instance, if a chilli shipment fails a residue test, the system should be able to work backwards to the farm or cluster that produced it, identify the inputs used and check which other lots may be affected. Without that information, every rejection remains an isolated incident. That is why traceability matters. 

India already has these systems in place. However, they are neither adequate nor comprehensive enough to cover every agricultural and food export.

India Has the Pieces. They Need to Work Together.

The bigger challenge is making these systems work as one continuous chain, from the farm to the export container.

The recent rejections point to a basic checklist: better pesticide guidance, reliable traceability, risk-based testing before shipment and destination-specific label checks before products are packed.

For Bhadri, this is ultimately a question of mindset. He said: "The real goal should be to know where a product can fail, control those points early, and use testing to verify that the controls are actually working. That is how you build confidence in Indian food exports, rather than simply trying to get one shipment through."

The long-term goal also needs to go beyond exports. India needs stronger domestic food-safety and labelling standards, with best practices becoming part of everyday business for farmers, traders and food companies. That is how fewer export shipments will be rejected in the first place.

Disclaimer: The views expressed in this article are solely those of the author and do not necessarily reflect the opinion of NDTV Profit or its affiliates. Readers are advised to conduct their own research or consult a qualified professional before making any investment or business decisions. NDTV Profit does not guarantee the accuracy, completeness, or reliability of the information presented in this article.

READ | 'Cannot Take High Growth For Granted': DEA Flags El Nino, Crude Oil Shock And Employment Risks

Essential Business Intelligence, Sharp Market Insights, Practical Personal Finance Advice, Daily Fuel, Gold and Silver Prices and Latest Stories — On NDTV Profit.