Business Daily from THE HINDU group of publications
Wednesday, Aug 23, 2006
Business Daily from THE HINDU group of publications Wednesday, Aug 23, 2006 |
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Government
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Agricultural Policy Agri-Biz & Commodities - Spices & Condiments Industry & Economy - Exports & Imports Centre decides to cap import of Lankan pepper G. K. Nair
Import scenario India wanted to cap imports at 3,000 tonnes, Lanka wanted it at 2,000 tonnes. Oleoresin units could import 2,500-3,000 tonnes light berries. Cracked pepper shipments seen at 1,500-2,000 tonnes.
Kochi , Aug. 22 The Union Government is reported to have decided to impose restrictions on import of black pepper from Sri Lanka. A report in Sri Lanka's Colombo Page said India had put a cap of 2,500 tonnes on duty free imports of black pepper. In fact, the Union Commerce Ministry was for restricting the imports to 2,000 tonnes a year, while Sri Lanka insisted on 3,000 tonnes. Eventually, according to the report, the decision to fix the quota at 2,500 tonnes was taken at a meeting of both Indian and Sri Lankan officials in New Delhi. The 2,500 tonnes of pepper would be in addition to the imports of the produce by the oleoresin industry and grinding segments under advance licence scheme.
Reactions
Reacting to the reported decision, trade sources here told Business Line on Tuesday that the requirement of the extraction units of light berries would be between 2,500 and 3,000 tonnes, while that of the grinding sector for producing powder and cracked pepper would come to 1,500 to 2,000 tonnes. Thus, the total imports from the island neighbour, they claimed, will range between 6,500 and 7,000 tonnes.
Imports
They suggested that the entire quantity of imports under advance licence be restricted to grinding and extraction units. Besides, all the imports of pepper from Sri Lanka should be allowed through one Indian port, viz Kochi so that the consignments could be properly monitored for quantity and quality by the Customs, Spices Board, Plant quarantine and health departments. Such a measure would have indirect impact on the imports from Sri Lanka "as at present all sorts of inferior quality, high moisture and fully mouldy pepper is being dumped into the domestic markets here and that is against our own food and drug regulations," they alleged. Meanwhile, according to officials of the Sri Lankan Spices and Allied Products Producers' and Traders' Association (SAPPTA), the exports of pepper from the island nation to India in 2005 were at 7,812 tonnes as against 4,851 tonnes the year before.
SL output
The total pepper production there in 2005 stood at 15,300 tonnes compared to 12,020 tonnes in 2004 recording an increase of 3,280 tonnes. "Although official estimates for 2006 are yet to be released, they should not be very different from 2005," they said.
FTA violation
On the violation of FTA by shipping out to India commodities of other countries as of Sri Lankan origin, they informed Business Line on Tuesday that the Sri Lankan Departments of Commerce and Customs and SAPPTA "have jointly plugged all loop holes to ensure that only indigenous commodities obtain the ISFTA certificates." It is this tight policy that has recently "lead a Chennai trader to forge the ISFTA certificates to clear consignments received from Indonesia into India," they added.
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