For the past few months Cheap Pepper imports from Vietnam has been
causing problems in India, as decline in domestic prices being the main
problem. Now the Spices board has recommended a ban on imports of Pepper
siting quality concerns.
Pepper prices in India has declined to about Rs 400 per kg from Rs
650 per kg about a year ago, on the back of cheap imports from Vietnam
through Sri lanka. The Food Safety and Standards Authority of India
(FSSAI) has put the Vietnamese Pepper under the scanner for suspected
contamination.
Three months ago, the Multi Commodity Exchange (MCX), expecting to
bring some stability in prices launched trading in Malabar Garbled Black
Pepper futures contract, but due to the cheap import it did not get the
desired result.
It is estimated that Vietnam has exported about 3000 tons of Pepper
to Sri Lanka during July and another 2000 tons in August and from that a
majority share has arrived in India. Import from Sri Lanka carries a
duty of 8 percent under the SAARC agreement, compared with 70 percent
from other countries.
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