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India’s pepper exports declined sharply, by about 37 per cent, in 2016-17 even as imports rose.
According to Spices Board sources, India shipped 17,600 tonnes of pepper valued at ₹1,141.89 crore last year, against 28,100 tonnes valued at ₹1,730.42 crore in 2015-16. That’s a drop of 37 per cent in volume terms and 34 per cent in value terms.
Imports during the April-February 2016-17 period were 15,644.19 tonnes via Kochi port alone, an increase of 7.9 per cent over the corresponding period in the previous year. At the national level, it is estimated at around 18,500 tonnes, Chamber sources said.Total imports in 2015-16, according to the sources, stood at 19,365 tonnes, valued at ₹1,162.96 crore.
In 2016, India imported 11,180 tonnes of pepper from Vietnam and was among the top five main importing countries. Sources in the export business attribute the sharp fall in exports to the fact that Indian pepper prices have been ruling much above those of pepper from other regions.
“As a result, many buyers of Malabar pepper have switched over to Indonesia and Vietnam. Consequently, we have lost many of our export markets and it has become a difficult task for exporters to regain the lost market,” said Kishor Shamji, a veteran exporter.
No production increaseHe attributed the high pepper prices in India to strong domestic demand without a corresponding growth in production.
Of late, around 90 per cent of Indian pepper exports are accounted for by re-export of imported pepper after value additions such as extraction, grinding and sterilisation.
Extractors accounted for 9,795.42 tonnes of imports via the Kochi port and re-exporters for 5,848.77 tonnes.
Traders and growers say prices prices fell by over ₹21,000 a quintal in one year owing to import of cheap pepper from Vietnam via Sri Lanka under misdeclaration.
Responding to farmers’ grievances, Homey Cherian, Director of Arecanut and Spices Development, Agriculture Ministry, said it was possible pepper produced in ASEAN was being routed through Sri Lanka or other SAARC countries to avail of the lower import duty. But, he added, there is no data to corroborate this. The government, he claimed, is taking various measures to prevent illegal imports of pepper.
On June 20, 2016, spot prices were at ₹69,700 (ungarbled) and ₹72,700 (garbled) a quintal; today, they are at ₹48,500 and ₹50,500 a quintal, respectively. And yet, Malabar pepper remained uncompetitive in glkobal markets, they said.
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