Pepper growers and traders have urged Prime Minister Narendra Modi and Union Commerce Minister Nirmala Sitharaman to fix a minimum import price (MIP) of $6,000 a tonne for black pepper coming in from Vietnam.

The move comes amid fears that Vietnam pepper will be imported through mis-declaration and under-invoicing, given the huge domestic demand and prevailing high prices. Such imports may significantly impact domestic growers, who are facing a heavy crop loss now due to erratic weather conditions last year.

Kishor Shamji, President of the Indian Pepper and Spice Trade Association (IPSTA) and a veteran exporter, told BusinessLine the organisation has written to Modi and Sitharaman on this.

“Vietnam pepper production in 2017 is estimated at 2 lakh tonnes and exporters there have started selling produce at lower prices, even though they do not have any competitors at present in the world market,” he said.

Since the duty as per an ASEAN agreement has now reached 54 per cent on import of pepper from Vietnam, many Indian importers are looking to bring in black pepper from Vietnam by paying the duty. “Many importers, lured by the high domestic price, are under-invoicing heavily and thus causing loss of revenue to the government besides damaging the interests of Indian pepper farmers,” the letter said. Vietnamese pepper may also enter India via Sri Lanka, Shamji said.

Spot pepper falls

Meanwhile, spot pepper continued to fall on Friday on persistent selling pressure. On the terminal market, 30 tonnes were traded at ₹570-585 a kg. Upcountry buyers are waiting for the prices to fall to ₹500 a kg upon the arrival of Vietnam pepper, trade sources told BusinessLine .

Spot prices dropped by ₹300 a quintal to close at ₹57,500 (ungarbled) and ₹60,500 (garbled).

May, June and July contracts on the IPSTA remained steady at ₹58,000, 57,000 and ₹57,000 a quintal.

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