7 months ago
Illegal Indian Peanut Shipments Enter Indonesia
Indonesia has been importing a lot of peanuts from India, but there's a problem.
Some of these peanuts have high levels of a harmful substance called aflatoxin.
So, Indonesia stopped importing them for a while.
But now, even though the ban is lifted, many peanuts are still coming in illegally through Malaysia.
This is because the rules are strict, and some people are finding ways around them.
The illegal shipments are affecting prices and causing issues for both countries.
China is also telling other countries to be careful about the quality of peanuts they import, which is making things harder for Indian exporters.
Indonesia has been importing groundnuts from India illegally via Port Klang in Malaysia, accounting for 90% of imports.
The illegal shipments have surged since November 2025, with 825 containers moving via Dumai illegally compared to 80 containers officially.
Aflatoxin levels in Indian groundnuts are higher than permitted levels in Indonesia, leading to stricter regulations and illegal trade routes.
Malaysia's annual groundnut imports are around 55,000 tonnes, with a significant increase in illegal shipments to Indonesia.
China has mandated ASEAN countries to tighten quality control on groundnuts and source more from Chinese growers, affecting Indian exporters.
- Who
- Indian exporters and Indonesian importers
- What
- Illegal shipments of groundnuts (peanuts) from India to Indonesia via Malaysia
- Where
- Primarily through Port Klang in Malaysia and Dumai port in Indonesia
- When
- Since November 2025, with a significant increase in October-December 2025
- Why
- Due to stricter regulations and higher aflatoxin levels in Indian groundnuts, leading to illegal trade routes
Key facts
- Illegal Shipments
- 90% of groundnuts imported into Indonesia
- Popular Route
- Port Klang in Malaysia
- Containers Moved
- 825 containers via Dumai illegally in November
- Aflatoxin Levels
- Indonesia's limit: 15 PPB, India's limit: 20 PPB
- Malaysia's Annual Imports
- 55,000 tonnes
- Indonesia's Imports
- 2.77 lakh tonnes valued at $280 million in 2024-25
- India's Total Exports
- 7.46 lakh tonnes valued at $795 million in 2024-25
- Domestic Prices in Indonesia
- 30,000-32,000 Indonesian rupiah per kg
Quotes
Singapore-based trade source
A trade source based in Singapore
“Between India and Malaysia, there are no strict rules, especially when Port Klang is described as a transit port. From there, barge and small boat operators take the goods in shipments of 20 containers to different places, including Dumai port, which is a major smuggling port of Indonesia.”
thehindubusinessline.com
“Imports to Malaysia surged in October to 8,300 tonnes (6,533 tonnes in October 2024), 15,800 tonnes in November (6,000 tonnes) and 15,000 tonnes in December (3,625 tonnes). This is a clear indication of something illegal.”
thehindubusinessline.com
Second trade source
A second trade source
“Some of them, who need at least 100 tonnes a day, have hardly a couple of containers (40 tonnes) with them as stocks.”
thehindubusinessline.com
“After landing, the consignments change hands. The deal is done through cash.”
thehindubusinessline.com
Indian trade source
An Indian trade source
“The Port Klang-Dumai route is also accessed for illegal smuggling of rice exports from India. These are giving way to hawala trading.”
thehindubusinessline.com
Sources
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