New derogation framework allows limited use of imported organic ingredients for value addition and re-export under strict traceability safeguards

Agricultural and Processed Food Products Export Development Authority has introduced a limited derogation framework under India’s National Programme for Organic Production (NPOP), allowing select USDA-NOP-certified imported organic ingredients to be used for value addition and re-export to the United States under tightly controlled conditions.

The move comes as part of a partial modification to APEDA’s earlier advisories issued in 2014 and February 2025, which had permitted the use of imported USDA-NOP-certified organic ingredients only for manufacturing multi-ingredient products for re-export to the US.

Under the revised framework, certain single-ingredient imported organic products can now also undergo value addition or processing in India before being re-exported to the US, subject to strict compliance, traceability, and certification safeguards.

The decision has been taken under Clause 4.7.1 of the 8th Edition of the NPOP regulations, notified on January 5, 2025, and effective since July 2025. The clause permits the use of imported organic ingredients for manufacturing multi-ingredient organic products in India for re-export in accordance with the importing country’s regulations.

Select Products Eligible Under Derogation

At present, the derogation applies to four identified products — Ceylon Cinnamon, Inulin, Tapioca Syrup with flavour, and Dandelion. According to APEDA, the relaxation has been introduced in view of constraints such as non-availability of specific ingredients or required varieties in India, or insufficient domestic quantities under organic certification.

Strict Conditions and Compliance Framework

The facility will be available only to units certified under both NPOP and USDA-NOP frameworks and will apply exclusively for re-export to the US. The products cannot be sold in the domestic market or exported to any other country under this provision.

APEDA clarified that the derogation does not amount to equivalence or mutual recognition between India’s NPOP and the US National Organic Program (NOP). NPOP will continue to remain the primary certification framework.

The framework mandates full traceability and segregation of imported organic products, mandatory transaction certificates marked “Re-export under import derogation,” risk-based and surprise inspections by certification bodies, separate online registration and documentation for imported organic ingredients, and strict audit trail maintenance from import to final export consignment. Further, only imported products covered under NPOP standards will be eligible for re-certification in India.

Limited-Time Relaxation With Sunset Clause

The derogation has been introduced as a temporary measure and will remain valid for a maximum period of three years, subject to periodic review and compliance monitoring.

APEDA stated that one of the key conditions for availing the relaxation is that overseas producers supplying USDA-NOP-certified products must initiate the process of obtaining NPOP certification. The transition period prescribed under NPOP is two years for annual crops and three years for perennial crops.

The authority noted that the policy is aimed at balancing export competitiveness with regulatory integrity while supporting Indian processors engaged in value-added organic exports to the US market.

Labeling Norms Remain Intact

Under existing NPOP labeling regulations, products can be labeled “organic” only if at least 95 percent of ingredients are certified under NPOP and carry the India Organic logo.

Where imported USDA-NOP-certified ingredients do not exceed 30 percent of the final product composition and the remaining ingredients are NPOP-certified, labels may carry the declaration “made with organic ingredients.” Such products will be permitted only for re-export to the US.

APEDA has directed certification bodies to ensure complete traceability and compliance regarding the permissible use of imported organic ingredients within approved thresholds.

— Suchetana Choudhury (suchetana.choudhuri@agrospectrumindia.com)