Pepper Growers asks Govt to limit Vietnam imports
Black pepper growers who are hurt over the downward trends in spot prices are now strongly opposing exessive import of cheap Vietnamese pepper and urged Government to fix a minimum import price (MIP) of $6,000 a tonne for black pepper coming in from Vietnam.
Reports are saying,Growers and traders have urged Prime Minister Narendra Modi and Union Commerce Minister Nirmala Sitharaman to fix a minimum import price (MIP).
According to latest reports, Vietnam pepper will be imported through mis-declaration and under-invoicing via Srilanka.
Due to huge domestic demand and prevailing high prices. Such imports have significantly impact domestic growers, who are facing a heavy crop loss now due to erratic weather conditions last year.
The organisation has written to Modi and Sitharaman on this issue – said Kishor Shamji, President of the Indian Pepper and Spice Trade Association (IPSTA).
Many importers, lured by the high domestic price, are under-invoicing heavily and thus causing loss of revenue to the government besides damaging the interests of Indian pepper farmers.
As per ASEAN agreement, Import duty from Vietnam has reached 54 per cent.
Meanwhile, On Wednesday ,Black Pepper spot prices crashed on Wednesday on reports of arrival of 2,000 tonnes of Vietnam pepper through Sri Lanka under Indo-Sri Lanka Free Trade Agreement.
Spot prices dropped by Rs 600 a quintal to Rs 55,500 (ungarbled) and Rs 58,500 (garbled).
Vietnamese black pepper is dominant over Indian pepper
According to reports,Vietnamese black pepper is dominant over Indian pepper in terms of supply source and price.
India’s black pepper export has fallen sharply because of strong competition from Vietnamese pepper, which is having more advantages in terms of supply source and price.
According to data from Spices Board (India), India’s pepper export from March 2016 to December 2016 decreased by 40% in volume and 37% in value in comparison with the same period in 2015.
At present, black pepper prices in Vietnam have dropped from USD 5,250/ tonne to USD 5,000/ tonne. Meanwhile, India’s black pepper prices are still fluctuating around USD 9,000/ tonne. The huge difference in price has made Indian black pepper less competitiveness than Vietnam pepper.
Source:
BusinessLine.com
