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Indonesia cracks down on illegal groundnut imports from India
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Thursday, 22 January, 2026, 13 : 00 PM [IST]
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Our Bureau, Mumbai
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Indonesian authorities have stepped up enforcement against illegal groundnut imports originating from India, following concerns over unauthorised shipments entering the Southeast Asian market.
According to reports, Indonesian customs and regulatory agencies have begun intensified actions after identifying that a substantial volume of groundnut consignments often routed indirectly through Malaysia’s Port Klang were reaching Indonesian ports without proper import clearances. These shipments are widely believed to bypass official trading channels and regulations imposed under Indonesia’s tightened groundnut import policy.
Trade analysts monitoring this phenomenon say that even at the height of Indonesia’s suspension of Indian peanut imports late last year, many consignments continued to enter Indonesian territory through alternative maritime routes rather than official ports. In one reported period, more than 825 containers of peanuts were believed to have arrived unofficially at Dumai — a key smuggling transit point — while a far smaller number reached the country through authorised channels.
The crackdown forms part of a broader sweep that includes other commodities suspected of being imported illegally, such as rice, sugar, onions, garlic and chillies. Indonesian authorities are intensifying surveillance and inspections to curb the flow of unregistered agricultural products that could undermine domestic policies and market standards.
The illegal groundnut imports issue comes against the backdrop of Indonesia’s earlier suspension — and subsequent limited reopening — of India’s peanut export channel, originally triggered by quality concerns including alleged aflatoxin non-compliance. While Indonesia has lifted the outright ban, the country’s stricter quality and documentation requirements have deterred some Indian exporters from resuming regular shipments.
Industry watchers say this development highlights the need for clearer bilateral trade protocols and stronger quality assurance mechanisms to support legitimate groundnut trade between the two nations.
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