Halal Certification Dispute in India Raises Export Concerns

The recent Halal certification ban in Uttar Pradesh, India’s most populous state, has sparked concerns among prominent Islamic organizations regarding its potential impact on Indian exports to Muslim-majority markets. Governed by the Hindu nationalist Bharatiya Janata Party, Uttar Pradesh has announced a ban on the production, storage, distribution, and sale of Halal-certified products, although the ban is exempted for exports.

This development is critical in the context of the robust global demand for Halal-certified products, a market where Indian companies have been competitive players. The Halal Trust of Jamiat Ulama-i-Hind stresses the importance of Halal certification for Indian exports, especially to Muslim countries. The certification, aligning with Islamic teachings, ensures that products are permissible for consumption by Muslim consumers and meet strict hygienic and ethical standards.

The controversial ban followed a complaint alleging that Halal certification was being misused by some companies to boost sales by targeting specific religious demographics. The Uttar Pradesh government has taken legal action against several firms, including Halal India Private Limited and Jamiat Ulama-i-Hind Halal Trust, for allegedly using fake documents to sell Halal-certified products.

Mufti Habib Yusuf Patel, president of the Mumbai-based Halal Council of India, criticized the ban, highlighting the potential discrepancy in Halal standards for domestic versus export markets. He warned that such a decision could undermine the trust in Indian companies relying on the Halal label for exports, particularly in the global Halal market.

Despite these allegations, the demand for Halal-certified products in India is not limited to Muslim-owned businesses. Non-Muslim entrepreneurs also seek Halal certification to cater to the vast market of Muslim consumers, both domestically and internationally. The Halal Council of India assists these businesses in understanding and complying with Sharia standards, which boosts their growth and expansion.

Jamiat Ulama-i-Hind has denounced the allegations against Halal certification as baseless, considering it an attempt to spread misinformation. The importance of consumer choice in product selection, similar to preferences for vegetarian or egg-free products, is emphasized by the Halal Council Chief.

With a significant Muslim population in Uttar Pradesh and across India, the ban has implications beyond trade, affecting cultural and religious dynamics. It also poses questions about India’s stance in the global Halal market, where countries like Malaysia have set high standards, resulting in a flourishing Halal commerce sector.

The unfolding situation in Uttar Pradesh regarding the Halal certification ban is a complex issue with far-reaching consequences for India’s trade relations, especially with the Organisation of Islamic Cooperation countries and Southeast Asian regions. It underscores the need for a balanced approach that respects cultural sensitivities while fostering economic growth.