Chinese honey, which has been banned internationally owing to the presence of certain chemicals, has made its way to the Indian market.
Food experts said some Indian traders were importing Chinese honey and later exporting it with a 'Produce of India' label, which will hurt India's honey exports severely.
Vijay Sardana of the Centre for International Trade in Agriculture and Agro-based Industries, said, "Indian honey has a very good image in the international market because it is pure and organic.
However, if Chinese honey is re-exported with Indian labels, then India's image will be tarnished."
Indian exporters are purchasing honey from China at throwaway prices as the product cannot be sold in most markets across the globe.
In 2002, the United Kingdom Food Standards Agency had carried out tests on Chinese and blended honey on sale in the UK.
The tests revealed presence of chloramphenicol, an antibiotic which can cause cancer in large doses.
Chinese honey exports had been banned in European Union following concerns about lack of controls on the use of veterinary drugs in China.