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G. Srinivasan

New Delhi, Nov. 26 The Commerce Ministry is mulling over a comprehensive proposal for replantation programme for pepper on the lines of similar programmes in tea, coffee, rubber and cardamom in order to augment productivity of pepper and realise higher returns on prices for the benefit of the growers.

Official sources told Business Line here that Indian pepper is facing a fierce competition both within and also abroad from Vietnam and Sri Lanka as a result of which both production and exports have been plummeting over the past few years.

They said while production of pepper was as high as 80,000 tonnes in 2001-02, it has been stagnating at 50,000 tonnes for the years 2005-06 to 2007-08.

Though the volume of exports and value have been rising from 22,877 tonnes in 2001-02 to 35, 000 tonnes in 2007-08 and value from Rs 203.69 crore to Rs 519.50 crore during the corresponding years, a lot of domestic production got pre-empted to export markets, leaving a relatively inconsiderable quantity for domestic consumption. As a result of which, domestic pepper prices have been ruling higher, they said.

This is the reason why there is a need for a comprehensive programme for replantation and rejuvenation for pepper too but this is stymied because of lack of funds to the Spices Board to take specific programmes for pepper.

The Board has a single point responsibility for all facets relating to cardamom alone, while in the case of pepper, the state departments of Agriculture /Horticulture remain responsible for cultivation, production and productivity augmentation.

Research for pepper is carried out under Indian Council of Agricultural Research (ICAR).

The Spices Board is involved in the marketing and exports of pepper and its role is circumscribed only to that segment, the sources added.

The sources said the Minister of State for Commerce and Power, Mr Jairam Ramesh, has recently written to the Union Minister of Agriculture, Consumer Affairs, Food & Public Distribution, Mr Sharad Pawar, drawing his attention to the need for entrusting the Department of Commerce with all aspects of production and development of pepper.

They said the Commerce Department has drawn up an action plan to strengthen India’s pepper economy in the wake of the India-ASEAN free trade agreement (FTA).

This would entail an investment of Rs 1,000 crore spread over a span of 10 years, for which Rs 500 crore would be required to be expended by the Central Government.

When contacted, Mr Jairam Ramesh said the Indian pepper, already under stress, is likely to face further threat from the low-cost economies like Vietnam after India signs an FTA with Asean next month.

Hence, there is an urgent need to make concerted efforts to improve the production, productivity and take steps to enhance value addition. Hence it becomes important to make a single agency, i.e., Spices Board, accountable for production, processing and marketing, he said emphatically.

Mr Ramesh also points out that during the current 11th Plan (2007-12), the Spices Board would be spending as much as Rs 92 crore for cardamom alone for production and productivity enhancement, whereas in the case of pepper it would spend barely Rs 2 crore for the five-year period.

More Stories on : Spices & Condiments | Outlook

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