Pepper exporters seek redress

Stakeholders of the Sri Lankan Spice industry have sought an assurance from the Ministry of Trade and Commerce here that no caps would be imposed for exports of pepper to India.

Indian traders have contracted 300 tonnes of pepper from Sri Lanka, an exporter said.

India has been importing duty free pepper from Sri Lanka from March 18, 2003, when imports stood at 6,200 tonnes annually.

Over the last two years, it has risen to 7,500 tonnes from 7,000 tonnes.

The Spices and Allied Products Producers’ and Traders’ Associations recommendation was based on the argument that under the Indo-Sri Lanka FTA, applicable since March ‘03, a maximum quantity of around 3,500 tonnes of Sri Lankan pepper finds its way into the domestic market in India annually.

This was against the total quantity of about 7,500 tonnes exported from Sri Lanka to India, it said.

The difference of 4,000 tonnes was imported by the Indian Pepper Extractors (under advance licence) to manufacture oleoresin for export from the country and other export-oriented units that process pepper.

It said the current exports to India for its domestic requirement is not much over the intended export cap when seen from the point of view of thecountry’s pepper production.

As the intended cap from Sri Lanka is for 2,500 tonnes and the estimated imports into the domestic market in India is around 3,500 tonnes.

This was just 2% of India’s estimated production of 50,000 tonnes (as declared at the International Pepper Community sessions, 2007), it said.

Economic Times India