Sharp increase in pepper imports from Sri Lanka caps Indian domestic prices

Thursday, 16 December 2021 00:28 - - {{hitsCtrl.values.hits}}

The Hindu Business Line: Heavy arrivals of imported pepper from Sri Lanka have capped the domestic pepper price in India, said the Indian Pepper and Spices Traders, Growers and Planters’ Consortium.

Pepper prices touched a record high of INR 532 per kg earlier this month, before declining on heavy arrival of imported Sri Lankan pepper. Traders pointed out that increased availability of imported pepper in many consuming markets had led to a drop in domestic prices, which closed at INR 515 in Kochi on Tuesday.

According to the consortium Kerala coordinator Kishor Shamji, the import of black pepper for domestic use under South Asian Free Trade Agreement (SAFTA) for November 2021 registered a record high of 1,814 tons (including 39 tons without duty under the Indo-Sri Lanka Free Trade Agreement (ISFTA). A year ago, it was 454 tons while in November 2019 it stood at 230 tons. This is a record high in the last three years, he said.

The total import of black pepper from Sri Lanka during January-November 2021 was 8,961 tons – more than double from 4,017 tons from a year ago. During the same period in 2019, it was 3,144 tons.

Mumbai Nava Sheva had the highest quantity of 946 tons followed by KLPPL Panki, Kanpur at 313 tons. Chennai registered an import quantity of 264 tons while Mundra port received 179 tons.

Shamji alleged that in most cases ‘hawala’ and money laundering could be involved, or it could be importers not remitting the actual over invoiced price which is only meant for Customs clearance and payment of duty to Customs at INR 500 per kg basis, since normal duty for domestic use is 70% and under ASEAN it is 50%.

He also alleged that if the importers do not remit the invoiced value declared in the Bill of Entry it becomes a high violation of FEMA rules.