The Hindu Business Line : Plea to check malpractices in poppy seeds imports

Kochi, Nov. 3 The Centre is said to be losing over Rs 300 crore since January 2007 due to heavy under-invoicing and other allegedly fraudulent methods used in importing poppy seeds into the country. Hence, the trade has urged the Union Finance Minister to fix import duty for poppy seeds on kilo basis like in almonds import from the US, which attracts Rs 35 a kg.

Poppy seeds, also known in North India as “khus-khus”, a very high consumption spice, are imported from Turkey. Exports from that country are said to be controlled by a single broker in Istanbul, Bangalore-based trading sources engaged in spices told Business Line. Imports to India are allegedly controlled by two major importers based in Delhi and Bangalore, they said.

According to them, malpractices such as heavy under-invoicing, huge hawala trade and mis-declared imports are taking place, and that in turn is depriving others of business while the State is losing hundreds of crores of rupees towards revenue.

“Total revenue loss on poppy seeds’ fraudulent imports is above Rs 300 crore since January 2007, more than 100 cases of poppy seeds are pending at Navaseva and Tuticorin ports,” they claimed. “We are surprised that even though the Finance Ministry have got so much evidence, why no action has been taken on this fraud imports when cases are pending since 18 months”.

Valuation method

All spices imports are valued as per the prices given in the London-based magazine, Public Ledger. When it has given the price for Turkish white 99.9 per cent pure poppy seeds at $5,400 a tonne on May 16, 2008, the tariff value fixed by the Ministry of Finance (Department of Revenue) by notification No44/2008-Customs (N.T) on May 15 was at $4,658 a tonne. Similarly, when the price was $7,370 a tonne in August the tariff value was fixed at $5,034 a tonne. The tariff value fixed vide notification No 107/2008-NT dated September 16, 2008 was $6,844 a tonne when the Public Ledger showed the price at $7,000 a tonne.

The Department of Revenue fixes and reviews tariff value of poppy seeds every 15 days.

When cloves are imported into the country “we need to pay duty as per Public Ledger, straight duty is collected, no P.D. bonds, no bank guarantees are accepted, but for poppy seed imports P.D. bonds are accepted with bank guarantees.

The current price of poppy seeds in the country is at Rs 490-510 a kg. Import duty at present is 47 per cent and the tariff value fixed for imported poppy seed is $6,292 a tonne. In order to arrest manipulation and other malpractices in the import of poppy seed and other spices, the trade suggests that “kilo based import duty be fixed” similar to that of almonds imported from the US.

In India, poppy seed is grown in Rajasthan, Uttar Pradesh, Madhya Pradesh. The Central Board of Narcotics, Gwalior, is the controlling agency in India and without its permission imports are not allowed to be made. Imports are also allowed only from countries which are legally growing poppy seed under the Vienna-based International Narcotics Control Bureau.

The annual demand in the country is estimated at 10,000-12,000 tonnes. The indigenous production is at around 4,000 tonnes. Therefore, a good portion of the requirement is met by imports which used to be between 6,000 tonnes and 12,000 tonnes. Poppy seed is used in vegetable curries, sweets, fish dishes. In South India, it is widely used in the cooking of “sambhar”, chutney and other vegetable preparations.

More Stories on : Seeds | Exports & Imports | Economic Offences

Article E-Mail :: Comment :: Syndication :: Printer Friendly Page

Stories in this Section
Pusa 1121 gets notified as basmati rice

Plea to check malpractices in poppy seeds imports

Bio-fuels that won’t starve you

Spot rubber rules steady

Tea exports set to touch 210 m kg

Bulk of tea offers goes unsold at Coonoor

Prices ease at Kochi tea sale

Modern lab set up to boost organic farming

Cotton body pleads for cut in support price

Cardamom prices slide on heavy arrivals