For the past few months Cheap Pepper imports from Vietnam has been causing problems in India, as decline in domestic prices being the main problem. Now the Spices board has recommended a ban on imports of Pepper siting quality concerns.
Pepper prices in India has declined to about Rs 400 per kg from Rs 650 per kg about a year ago, on the back of cheap imports from Vietnam through Sri lanka. The Food Safety and Standards Authority of India (FSSAI) has put the Vietnamese Pepper under the scanner for suspected contamination.
Three months ago, the Multi Commodity Exchange (MCX), expecting to bring some stability in prices launched trading in Malabar Garbled Black Pepper futures contract, but due to the cheap import it did not get the desired result.
It is estimated that Vietnam has exported about 3000 tons of Pepper to Sri Lanka during July and another 2000 tons in August and from that a majority share has arrived in India. Import from Sri Lanka carries a duty of 8 percent under the SAARC agreement, compared with 70 percent from other countries.
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