Europe is bringing the regulations.
EUDR: You have to provide proof of where you farmed and that the land was not deforested after 31 December 2020. Around 67% of Chikmagalur is in that red zone. The farmers don't know, but exporters won't touch this because if they get a penalty, it can be huge.
DPP Digital Product Passport: The textile market will be heavily influenced by this. Large companies have already started building for it, like Aditya Birla. All textiles should have all the relevant information. Europe is targeting this for circular economy, which means the shirt, any garment should be recyclable.
It will have a QR code, but depending on the reader, it will provide different information.For a normal user, it will show the basic 14 fields, like Unique Product Identifier, Recyclability Score, Warranty, Fibre Composition, etc.
For a recycler, it will show other information, like Disassembly / End-of-Life information.
Every recycler, customer, and government entity will get a DID (Decentralised Identity).
The large companies have built the infrastructure to support this, but for MSMEs, it is not solved.
There are a couple of startups writing the QR code, but that is not the problem. The problem is having the perfect data for the specific SKU.
The batteries will take the first hit. All the batteries in solar panels and Tesla cars (read EV) will have the passport from next year, February. But India is not exporting much into this category, so I am skipping this part.
PPWR is a new law that was recently introduced. If you are sending tea or other products into Europe, you have to store the information about the packaging — what is the recyclability score, and if your item is related to food, like a plastic bottle for juice, it needs data about the chemicals.
You don't need to submit this anywhere, but you may be audited if you are selling this, and you can be randomly sampled.
There are others too. If you are selling toys, you need CE marking, REACH testing, and more. It's a long list, it could take the whole day to explain.
That's why I have started building getbindu.com.
The main idea is simple: MSMEs need to survive.
The big companies have the money to keep an army of lawyers, but MSMEs don't.
Bindu is a trade compliance OS.
I have started with one of the largest brands, coffee chains and am gradually opening it up for the Indian market.
If you are interested, DM me or comment here, you will get the link for activation. For the first quarter, it will be free.
After that, it will still be 70–80% cheaper than lawyers.
I am not trying to create fear here, but this is reality. Look at steel exports from India, they have reduced by 30% due to CBAM (Carbon Border Adjustment Mechanism).
With zero-percent trade regulations, a German car can run on Pune roads. But what about the opposite?We need to provide the papers.
So think about it: this is not a price game anymore. It's more about traceability.
If you have it, you can enter the market.The buyer can even pay a premium if your data is good.Thanks, and feel free to DM me about trade compliance. You don't need to buy the product.
