Fixing Pepper Minimum Import Price is Wrong,says Exporters

The Ministry of Commerce and Industry in last December had imposed a minimum import price for black pepper at ₹500 a kg to protect the interests of pepper growers.But All India Spices Exporters Forum (AISEF) recently opposed this move of Govt and says it will create negative perception for the Make in India initiative and would impact all investments in setting up of import-re-export businesses in future, unless it is reversed.

The government has fixed minimum import price of all forms of pepper at Rs 500 per kg or $7875 per tonne when today global market prices are trading at $3500-3600 per tonne. This means that the government is expecting all 100% export units to use India pepper at Rs. 500 per kg ($7875/tonne) which is about $4375 /tonne above the world parity levels

Forum alleges export units have contracts with international market for mixed spices like pepper, chillies, ginger, turmeric, etc , but in current situation its impossible to export by paying higher import rates as fixed by the govt, doing so would lead to the closure of export units.

Exporters also worried that failing in fulfill of agreed supply will cause breach of contracts and would create negative perception on Indian importers and exporters in International market.

Read more at:
The Economic Times