The Hindu Business Line : Marketfed likely to procure pepper from next week

THE Kerala Government would begin pepper procurement from farmers having up to two hectares of land under the crop probably from next week at Rs 75 a kg.

The State Cooperative Marketing Federation (Marketfed), which has been appointed as the nodal agency, will procure it. The funds required for the purpose, would be provided by the State Cooperative Bank (SCB), Mr P.P. Thankachan, Chairman, Marketfed, told Business Line on Thursday.

He said in accordance with the decision arrived at a meeting held at Thiruvananthapuram on Wednesday with the Chief Minister, Mr Oomen Chandy, other concerned ministers and senior officials the Federation had already submitted an application for a loan of Rs 45 crore to the SCB.

However, Mr Thankachan said the procurement would continue till the market price was stabilised at Rs 75 a kg. Therefore, the actual quantity to be procured and the total funds required for it would be known only later, he pointed out.

Around 6,000 tonnes of pepper could be procured with Rs 45 crore.

He said harvesting would reach its full swing only from the middle of this month in the major growing areas and by that time the Federation would be ready for the market intervention exercise.

Farmers will have to produce a certificate endorsed by the local government agricultural officer vouching that the grower has a land holding of two hectares or less and the pepper brought by him for procurement from his crop of the current season.

Such a certificate is mandatory as there could be manipulations in collaboration with the traders, he said.

The federation, he said, had very good marketing network in all the districts of the state and hence there would not be any problem. Ever since the announcement by the State Government, the pepper prices have improved and almost stabilised at Rs 7,300 for MG1 and Rs 7,000 a tonne for un-garbled pepper.

Total production in the country is estimated at around 70,000 tonnes and of this, Kerala production would be around 45,000 tonnes.

Coupled with an estimated carry forward stock of 20,000 tonnes, the total availability would be about 90,000 tonnes. Of this, the domestic market is expected to absorb around 55,000 tonnes and the procurement by Marketfed of 6,000 tonnes would raise it to 61,000 tonnes leaving a balance of around 29,000 tonnes of pepper.

If the major growers decide to hold back the produce as they do for even five years when the prices are ruling at lower levels, around 20,000 tonnes of pepper would not arrive in the market. Thus, what would be left for export will be around 10,000 tonnes, market sources said.

Add to this, there would be an import of over 10,000 tonnes from Sri Lanka and elsewhere for value addition and re-export, they added.

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