AP Chambers Calls on Indonesia for Tariff Parity on Indian Corn Starch

Quick Summary

• Meeting Details: Ni Made Mahatma Devi, Third Secretary (Economic) at the Indonesian Embassy in New delhi, met with Andhra Pradesh chambers of Commerce & Industry Federation (AP Chambers) for discussions on trade relations.
• Key Concerns Raised:

– Corn starch of Indian origin faces a 10% import duty in Indonesia, while Chinese corn starch receives preferential tariff treatment.
– Indian corn starch is excluded from the ASEAN-India Free Trade Agreement (AIFTA) tariff list, disadvantaging exporters.
– Procedural issues related to the Certificate of Origin persist as Indonesia insists on physical copies signed in ink amidst India’s digital export system.

• Chilli Imports quota: AP Chambers flagged concerns over Indonesia’s quota system limiting chilli imports from India but not China.

Indian Opinion Analysis

This discussion reflects broader challenges that Indian exporters face due to uneven trade policies adn procedural barriers. The disparity in tariffs for corn starch highlights a need for policy advocacy to include more commodities under AIFTA’s preferential tariff framework. Additionally, procedural inefficiencies surrounding the Certificate of Origin signal institutional delays that may hinder ease-of-doing-business efforts between the two nations.

The quota restrictions on chilli imports also suggest competitive disadvantages for India’s agricultural exports compared to China’s more favorable access. Addressing these issues could strengthen bilateral economic ties and streamline trade flows. These efforts will likely require robust diplomatic engagement to achieve equitable outcomes while ensuring deeper regional collaboration.

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