Kochi: The black pepper exporters, mainly concentrated in Kerala, are up in arms against the Union government fixing the minimum import price (MIP) of Rs 500 per kg.
Prakash Namboodiri, president of the All India Spices Exporters Forum, said the decision would only help drive away companies engaged in the export of value-added pepper and oleoresins to set up their business to countries such as Vietnam, offering the commodity at a much lower price.
“Kerala is known as the global capital of pepper oleoresins, pepper oil and powdered and grounded pepper. The industry needed to get pepper at globally competitive rates for the survival,” he told DC.
The Union government decided to impose minimum import price to shore up the domestic price falling for the past few months.
The average price of pepper was hovering in the range of Rs 650-700 per kg in the past three years compared with the current levels of Rs 439 per kg.
The steady increase in imports from countries such as Vietnam, which has emerged as the leading producer, also prompted the decision.
According to the Spices Board data, the import of the black pepper in 2016-17 (Apr-Mar) was higher than the export from the country. The import totalled 20,265 tonnes as against the export of 17,500 tonnes.
The data for the past five years show that except for 2015-16, export and import of the commodity remained mostly at the same levels.
