Exporters compile traceability proofs of land to comply with EU's new deforestation regulation
Indian exporters are putting together traceability proofs such as geolocation coordinates of plots of land and details of their entire supply chain as they gear up to comply with the European Union's new regulation on deforestation.
The EU Deforestation Regulation (EUDR) requires firms to ensure that products exported to the EU have been grown on land which has not been deforested after December 31, 2020.
The regulation has implications for India's coffee, cocoa, soya, wood products, rubber and its products and leather goods exports. It prescribes fines up to 4% of a firm's annual turnover in the EU and confiscation of products and revenues gained from a transaction for non-compliance.
As part of the process, exporters are putting together traceability proofs for land and establishments associated with raising cattle, details of the entire supply chain, forest-related rules and land use information for the last five years to ensure smooth transition and continued market access. «We have been working on the traceability software on sourcing hides and it should be ready by December. We have been preparing for almost a year,» said Rafeeque Ahmed, chairman of Farida Group, one of India's largest shoe manufacturers and exporters, adding that the estimate of the additional costs of compliance would become clear in sometime.
The EUDR, which aims to curb international deforestation by imposing strict compliance requirements on goods imported into the bloc, is expected to hit India's agricultural exports worth $1.3
