Vietnam pepper floods market

KOZHIKODE: The low-priced pepper from Vietnam with high pesticide content, smuggled into the country either as Sri Lankan pepper or pepper to Nepal, through free trade channels is posing a threat to the quality and price of Wayanad pepper, lament traders.

The duty for spices import to India from Sri Lanka is only 8.5 percent while the same to Nepal is duty-free. India has entered into an agreement with Sri Lanka for importing 2,500 tonnes of pepper per year.

“Recently about 500 tonnes of pepper from Vietnam exported to Nepal through Kolkata port was diverted to various parts of Wayanad, Coorg and Nilgiris in the Western Ghats region and resold in the North Indian market as Wayanad pepper,” said Anil Kottaram, a trader in Wayanad.   

“While the price of Wayanad pepper is around Rs 490, the imported pepper is available for North Indian traders for Rs 475,” he said, adding that the import cost of the pepper is around Rs 425 only as the pepper failed to meet the Western parameters of pesticide monitoring tests. 

“The importer gets a profit of Rs 50 per kilogram,” he said.

The spice traders demanded that it is high time the country should insist on strict pesticide residue tests for pepper imports though it is bound to neighbouring countries like Nepal and Bhutan. Kolkata port has become a hub of this illegal deal as it is the port from where it is transported the freight to Nepal by the road. 

There were much hue and cry from farmers’ organisations and traders on the unbridled import of pepper from neighbouring countries, as the import caused a crash of pepper prices in local markets.

The price of pepper which was Rs 610 to Rs 620 a kg in February, before the harvest in South India, nosedived to Rs 500 in May.