Daijiworld Media Network - Sullia (MS)

Sullia, Oct 19: To add on to the already reeling occupation of farming, the collapse of market rate of Pepper, which is considered as the 'Black Gold' for the growers, has caused great concern. Though the production of Pepper in the country is way below the demand, the import of the same from abroad is the reason for the downfall of the Pepper market. In India the yearly production of Pepper is around 35 to 40,000 tonne and the demand is 80,000 tonne. Even then because of the import of 70 to 80,000 tonne of cheap Pepper from Vietnam, the rate has seen a sharp decline.

The rate per kg of Pepper, which was hovering around Rs 300 to 320 is constantly falling down since the first week of October. The rate quoted for this commodity in the Puttur Campco market on Friday, October 18 was Rs 280 to 300. The market has seen a steep decrease of Rs 285 to Rs 280 in just a week.

The reason for this downfall in the market price of Pepper is the import from Vietnam, which is being done under the free trade agreement. This is imported via Sri Lanka. The production of Pepper has increased in Vietnam, due to which the rate has fallen to Rs 170 per kilo there. The yearly requirement of Pepper in Vietnam is just 5,000 tonnes, whereas their production has reached two lac tonnes.

The country is losing huge amount of import duty on Pepper. If the Pepper has to be imported directly from Vietnam to India, the importer has to pay a duty of 52%. However, if the same is imported via Sri Lanka, then the import duty is just 8%. So Vietnam is supplying Pepper to India via Sri Lanka. While Vietnam is making profit, India is losing the import duty and the Pepper growers are also losing their revenue.

The central government had brought an amendment for the import of Pepper from overseas and taken out a stringent circular not to allow Pepper inside the country for less than Rs 500 import duty in 2018. However, according to the data provided by ministry of commerce and industry, 20,265 tonne, 29,650 tonne and 24,950 tonne of Pepper was imported into the country in the fiscal of 2016-17, 2017-18 and 2018-19 respectively.

One of the Pepper growing farmer says, "The rate per quintal of Pepper was Rs 75,000 in 2015. Now it has fallen down to Rs 28,000. This means that the rate per kg which was Rs 750 in 2015 has come down to Rs 280 now. What the farmer gets is really less. The rate of retail Pepper in market is still Rs 900 per kilo."

According to S R Satishchandra, president of Campco, "If the Pepper imported from overseas is controlled for six months, the rate may climb upto Rs 400 per kilo. As the production is more in foreign countries, they are supplying at a cheap rate and that is why the market price in India has fallen badly."