KOZHIKODE: The pepper farmers of Wayanad are elated over the decision taken by the Union Ministry of Commerce to fix a minimum import price (MIP) for pepper. The price of pepper which touched Rs 675 in the corresponding period last year had tumbled to Rs 375 per kilogram this month due to the import from Sri Lanka. Mr N. Bavesh, a pepper merchant at Mattanchery, Kochi, told DC that soon after the commerce department fixed the MIP, the prices started moving up.
"Within a day, there was an increase of Rs 25 (Rs 400 per kilogram) in the pepper price which is expected to cross Rs 450 soon," he added. "I feel the move would help stabilise the price between Rs 450 and Rs 500," he said.
Various farmers' organisations had been raising a hue and cry to fix a MIP for pepper. Mr Kishor Shamji, president of the Indian Pepper and Spice Trade Association (IPSTA), also had written a letter to Prime Minister Narendra Modi demanding an MIP to safeguard the interests of farmers as well as traders.
"There was stagnation in the market due to the low price as the farmers were not ready to sell. Though there is huge imported stock, the importers also will not be selling out as the price is going up," he added. Now the Indian pepper is free from the Sri Lankan and Vietnamese threat. So far there was import of around 14,000 tonnes of pepper and almost 50 percent (7,000 tonnes) was from Vietnam, it was pointed out.
The duty for spices import to India from Sri Lanka is only 8.5 percent while the same to Nepal is free under SAFTA (South Asian Free Trade Area) agreement. India had entered into an import agreement with Sri Lanka for 2500 tonnes of pepper per year taking advantage of the low duty structure. The projected pepper production of Vietnam in the coming season is around 1.7 lakh to 1.9 lakh tonnes while that of India is around 65,000 tonnes to 70,000 tonnes, according to market experts.
