India is working with the US, European Union, the UK, Singapore, Switzerland, and ASEAN bloc countries to mutually accept each other’s inspection, testing and quality certification systems for farm produce in an attempt to ensure low-friction movement in such trade, two senior government officials told Mint.
The alignment of these systems under so-called Mutual Recognition Agreements, or MRAs, is expected to ensure agricultural goods enter foreign markets more smoothly and the high rate of rejections of Indian consignments over sanitary and phytosanitary (SPS) checks reduce. Such checks are put in place by the importing country to prevent pests and disease entering its agriculture and farm sectors.
In September 2025, India and Australia had signed an MRA on organic products, accepting each other’s certification for a wide range of organic products.
India hopes the MRAs will speed up exports of basmati rice, spices, tea, coffee, marine products, and fruits and vegetables. “The need for MRAs is underscored by frequent clearance delays and rejections,” said the first among the two officials cited above asking not to be identified. Shorter lead times and lower costs would also make Indian products more price-competitive in global markets, the official added. The second official, too, requested anonymity.
Exporters regularly report hold-ups because destination markets do not recognize Indian testing systems. India recorded over 1,000 food-export refusals in the United States in 2023, mainly over pesticide residues, hygiene issues and certification gaps, as per the US Food and Drug Administration (USFDA). More recent data is not immediately available.
Shipments to the European Union, too, have faced repeated delays or rejections through 2024 and 2025 due to residue violations, microbial contamination, packaging problems and missing documents, according to the Europe India Journal published in the EU.
Queries sent to the ministries of food processing industries on 25 November and commerce and industry on 26 November remained unanswered until publishing.
Wide impact
The MRAs under discussion could cover nearly half of India’s agricultural exports, as the targeted product categories account for 45-50% of the export basket, according to the government officials cited earlier.
In April-September 2025, farm exports rose by 8.8%, reaching $25.9 billion, compared to $23.8 billion in the year-ago period, government trade data showed. In FY25, India’s agricultural exports stood at $36.97 billion, higher than $33.24 billion in FY24.
MRAs are effective trade arrangements to minimize non-tariff barriers faced by Indian products abroad, an expert said. “With India able to secure just a few MRAs [so far], it shows the need for making signing of important MRAs in a short timeframe conditional to signing of FTAs (free trade agreements) with large countries,” said Ajay Srivastava, founder, Global Trade Research Initiative, a New Delhi-based research group.
At present, India has FTAs with 15 trade partners, including Iceland, Liechtenstein, Norway, and Switzerland (all four European Free Trade Association states); Australia; UAE; and the UK and is in an advanced stage of finalizing FTAs with the EU. The discussions are also progressing positively with the US, India’s largest trading partner, as well as with Peru, Chile, New Zealand, and Oman, among other countries.
Apart from Australian, India currently has no full-fledged MRAs with its major trade partners. Its partial arrangements are narrow organic-product equivalence understandings with the EU, Switzerland and Australia, which do not extend to mainstream agricultural goods. For non-organic products, India has no SPS MRAs with the US, UK, EU, Gulf countries, Australia or ASEAN, meaning most agri-exports still undergo full testing and certification at the destination.
India’s other MRAs – with Singapore on telecom equipment and Japan on pharmaceuticals – do not cover agricultural or food products. The development assumes significance as farm exports from the country are on the upswing, and any positive prospect will further give a fillip to this sector.
Aligning testing and quality regulations will foster trust, another expert said. MRAs “are not just technical instruments, they are a way to ensure our domestic systems are trusted abroad. Without that trust, exporters will continue to face avoidable friction,” said Dr Amit Singh, associate professor, Special Centre for National Security Studies at the Jawaharlal Nehru University, New Delhi.
Leg-up for small exporters
The move will be particularly helpful for micro, small, and medium enterprises (MSMEs) that struggle with high compliance expenses and other regulatory blocks, an exporter said. “If an MRA is materialized, especially with EU nations, exporters can save money on overseas testing, certification and documentation,” said a spice exporter requesting anonymity.
“Every rejection at a foreign port is a loss that MSMEs can barely absorb. Aligning our systems with global standards is not just a trade issue, it’s a survival issue for small exporters,” said Vinod Kumar, President, SME Forum.
India has the chance to become a trusted source in the global processed food market with a push in infrastructure and compliance support, a food industry executive said. “The biggest concern in processed food exports is standardization. Achieving consistency in quality, taste, shelf-life and safety across suppliers at scale remains a major hurdle,” said Sandipan Mitra, CEO & co-founder, HungerBox, a Bengaluru foodtech company.
While MRAs can give a big fillip to fruits and vegetables, where India is already among the top few global producers, the minutiae must also be paid attention to, said a sectoral representative. “The recipient countries must honour the MRA in letter and spirit,” said Ekram Husain, vice president of Vafa Fresh Vegetable and Fruits Exporters Association (Maharashtra). “In case of any extra molecule testing beyond the agreed list, the government must take up the case with importing countries on behalf of exporters.”