Archive · 20 Jan 2026
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
- When
- Since November 2025, with a significant increase in October-December 2025
- Where
- Primarily through Port Klang in Malaysia and Dumai port in Indonesia
- Why
- Due to stricter regulations and higher aflatoxin levels in Indian groundnuts, leading to illegal trade routes
- 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