Close on the heels of growers raising concerns on uncontrolled imports of Vietnam black pepper into India — portraying them as being of Sri Lankan origin — spice exporters have also come out against the threat, requesting the government to act strictly against such shipments which violate import guidelines.
Cherian Xavier, Vice-Chairman, All India Spices Exporters Forum, said that the reports of mislabelled black pepper coming through as Sri Lankan should be taken seriously by the concerned ministries of both the countries, without which the trend cannot be arrested.
It should be is imperative and mandatory for all importers to register under the Spices Board, which could put an end to such malpractices from unregistered importers. These imports can then be formally and legally regulated, so that it is declared, quality checked and not sold in the domestic marketimpacting the prices, added Xavier. However, he pointed out that domestic importers (who import pepper from elsewhere to sell in the domestic market) are not in the purview of any government body or the Spices Board.
Stricter monitoring
According to Xavier, pepper imports are crucial for the value industry, which re-exports them, contributing immensely to the exchequer. These imports and value-added exports are strictly monitored by relevant authorities, based on norms by EPZ, Customs and DGFT.
It is critical that the minimum import price of ₹500 per kg is strictly monitored, by verification of outward foreign currency through a self-declaration by such importers, certified by a chartered accountant.
Under the present system, Xavier pointed out, there are loopholes where the commercial invoice is of ₹500 per kg whereas the actual price can be lower.
This would lead to misuse of the price safeguard, he said.
Production woes
On the production front, he said Vietnam and Brazil have emerged as large producers of pepper, resulting in a downward spiral of prices in recent times. Due to this glut in global production, the prices have plummeted below cost of production.
However, domestic production would register a 15-per cent decline this year, due to floods and this could necessitate the need for more imports. Today, the domestic prices are hovering in the range of ₹355 per kg compared to ₹160 for Vietnam and Brazil pepper, he said Xavier.