Pepper growers protest imports

Pepper growers from key growing regions of Karnataka staged a symbolic protest in front of the office of Indian Products Pvt Ltd (IPP), a group company of Jayanti, alleging over invoicing of imports by the company. However, the company refuted the growers' allegations and said it was following the import norms.

Vishwanath K K, co-ordinator of the Consortium of Black Pepper Growers Organisations (COPGO) alleged that some trading houses including IPP were importing pepper, instead of buying from domestic market by over-invoicing the produce at a price above ₹500 a kg.

The current price in Vietnam is ruling around ₹190 a kg. "This is in complete violation of the trade norms," Vishwanath alleged. Over-invoicing causes losses to the ex-chequer, he said.

Vishwanath alleged that IPP had imported 155 tonnes of pepper of Vietnamese origin in May at a price above ₹500 per kg. "Instead of buying Vietnam pepper at over ₹500 per kg, why can't they source it from the local farmers at current price of ₹330 per kg? Vishwanath asked.

"We as exporters are facilitating value addition through processing and packaging black pepper of all origins for our global customers as per their requirement. In many cases, we are provided the pepper by our customers... If we do not carry out these operations in India, our share of business will be conveniently taken away by our competitors abroad," said Milan Shah, managing director, Jayanti.

"If the minimum import price is ₹500/kg, then what should be done? Shah questioned.

IPP exports about 2,000 tonnes of domestic pepper and re-exports another 1,500 tonnes annually.

The Centre had imposed MIP of ₹500 per kg in December last year after the domestic prices had crashed by around 40 per cent from a ₹550/kg level in June 2017. While the growers allege that the import of "low quality" pepper from Vietnam had affected the domestic prices, the trade said a global glut is weighing down the prices.

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