After Guatemalan cardamom, it now seems to be the turn of black pepper from Vietnam and Indonesia to find its way into the Indian market through the Nepal route.

According to the United Planters Association of South India (Upasi), clandestine imports of pepper through the Nepal route is hurting domestic growers.

“Pepper meant for Nepal from Vietnam and Indonesia, is finding its way into the Indian market in transit,” alleged Vijayan Rajes, Chairman, Upasi.

The land-locked Nepal imports pepper through the nearest port of Kolkata. The imported pepper, in transit, from Kolkata to Nepal by road find its way into the Indian market, Rajes told reporters ahead of the annual Upasi-Karnataka Planters Association coffee conference.

While such clandestine imports have been happening over the past two years, there’s hardly any estimate of the sale of such pepper in the domestic market, Rajes said. The Ministry of Commerce has recently asked the Directorate General of Foreign Trade to look into the issue, he added. Pepper imported into India from the South-East Asian countries attracts a duty of 60 per cent duty. From Sri Lanka, the import of 2,500 tonnes annually does not attract any duty. Subsequent imports from Sri Lanka attract a duty of around 8 per cent.

The domestic pepper output has declined by about 20 per cent in the past two years. From around 55,000 tonnes in 2012-13, pepper output has declined to 45,000 tonnes in 2013-14, Rajes said. The average price of pepper, which ruled at ₹448.29/kg in 2013-14 is ruling at ₹707.28 in the current financial year. The Spices Board has pegged the 2014-15 output at around 70,000 tonnes.

G.K Nair adds from Kochi: Pepper prices ruled steady on Wednesday on matching demand and supply. Re-processors were buying at ₹712-715 a kg. Original Rajkumari pepper was being offered at ₹727 a kg while other High Range pepper material was being traded at ₹725-723, they said.

Spot prices remained unchanged at ₹70,300 (ungarbled) and ₹73,300 (garbled) a quintal. Export prices were at $12,500 a tonne c&f for Europe and $12,750 for the US.

comment COMMENT NOW