Pepper exporters recuperate from lost Indian market, capturing other countries

SUCCESS: Though India restricted pepper imports from Sri Lanka to 2500 MT in August last year under FTA, local pepper exporters were able to capture steady markets in USA, Europe and Middle East and enjoy with a 60 per cent price increase in the international market.

Chairman and Managing Director of Sindbad Pvt Ltd and Past Chairman of the Spices and Allied Products Producers’ and Traders’ Association (SAPPTA) and member of the Management committee M.C.M. Zarook told the Daily News that Sri Lanka was able to export nearly 1700 MT of pepper to Europe, USA and Middle East last year.

There was a 60% price increase for pepper in the international market since last August.

There was a shortage in supplies from main producing countries such as Vietnam and Brazil to the international market.

Vietnam expected 100000 MT last year but they were only able to produce 40,000 MT. Thus creating many market opportunities for local exporters and were able to secure these markets, he said.

He said that when the restriction was effected last August local pepper exports to India exceeded 2500 MT. Since August 2006 to date no pepper exports were made to India.

However, from 1st of April 2007 Indian pepper exporters were trying to activate a local supply chain to import the 2500 MT of pepper allowed for financial year 2007/2008 from Sri Lanka.

SAPPTA has objected to the introduction of the restriction of 2500 MT through the Ministry of Trade and Commerce in Sri Lanka.

Pepper producers need to take effective measures to urge the authorities to rescind the restrictions on pepper exports to India, he further said.

(A.S)