The Consortium of Pepper Growers Organisation, which constitutes 14 prominent grower bodies from Karnataka, Kerala and Tamil Nadu, has urged the Commerce Ministry to modify its recent notifications imposing MIP for pepper in order to plug the loop holes in them.

“We are requesting the Ministry to modify its notification on the MIP of December 6, 2017 and February 5, 2018 (a) to allow import when the domestic market price is above MIP of ₹500 a kg; (b) at the time of loading (export to India) the average price (7 days before loading-at the on board vessel) should be above MIP as per the domestic market prices mentioned in the Spices Board website”, Konkodi Padmanabha, the consortium convener, and KK Vishwanath, Co-ordinator of the consortium, said.

The price to be considered by the Customs, as per the formula suggested by the Chairman of the Spices Board, should be the average of garbled and un-garbled as mentioned in the Board’s website.

“It has come to our knowledge from Customs officials that there is still an option to import pepper when the prices are below the fixed ₹500/kg from different country of origin,” Vishwanath told BusinessLine.

“They expressed their helplessness that at the present clause ( under “free” ) their hands are tied. As of now, pepper, if imported, will be adjudicated and the stipulated officer will review the file and allow the import by levying a meagre fine of 10 per cent on the imported value. This is the reason black pepper is still imported from different destination even when the prices are below the set ₹500 in the domestic market,” he said.

As of now, he said, black pepper price in Sri Lanka is around ₹300/kg as against our domestic price which stands at ₹390.

Related Topics