Source:
Zee News IndiaWashington, Dec 22: A quarter of consumer food products import in India is conducted illegally, adversely affecting legitimate importers in the country, according to a US government report.
"A significant quantity (25-30 per cent) of imported food enters India through illegal channels like smuggling and leakages from duty-free outlets and ships at docks," US Department of Agriculture said in a report published here.
Legitimate importers, who pay high import duties, face stiff competition from this illegal grey market, even though smuggling is gradually diminishing with trade liberalisation and declining tariffs, according to the report issued by the USDA's Foreign Agricultural Service (FSA).
Most of the imported food products, including those coming from the US, are trans-shipped through regional trading hubs such as Dubai and Singapore, due to their liberal trade policies and efficient handling capabilities, it said.
The USDA-FSA report noted that the US firms are facing challenges in exporting food and beverages to India because of complicated and non-science based food laws, difficult custom clearance system and restrictive domestic marketing and distribution policy.
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