According to the official notice of the Leaders of the Ministry of Agriculture and Rural Development to the Vietnam Pepper Association (VPA), after the VPA’s urgent dispatch sent directly to the Minister, the leaders of the Ministry of Agriculture and Rural Development had a working session right away. with the Indian Embassy in Vietnam on the afternoon of March 16, 2017.
After the meeting, the two sides agreed to remove a number of bans on the import of some agricultural products of the two countries, which were issued in early March 2017.
Over the past time, Vietnam’s pepper industry has enjoyed rapid growth, with an estimated area of 130,000 hectares, export output in 2016 is over 179,000 tons, reaching a turnover of over $1.4 billion. Export volume is expected to increase by about 15% in 2017.
On March 7, 2017, the Association received a complaint from businesses about the suspension of the Plant Quarantine Certificate issued by the Plant Protection Department of Vietnam because of the document of the Plant Protection Agency of India under the Ministry of Agriculture and Rural Development. Agriculture and Farmers’ Welfare of India, March 6, 2017 announced the request of the Plant Protection Department of Vietnam to stop issuing Phytosanitary Certificates from March 7, 2017 for 6 items including pepper. Therefore, from March 7, 2017 until now, Vietnamese enterprises did not dare to export pepper to India even though the Vietnam Plant Protection Department still agreed to grant it, leading to the possibility of great damage because the containerized goods could not be delivered. , purchased goods have not been exported yet, signed foreign trade contracts are likely to be canceled, and the quantity stopped is estimated at thousands of tons.
At the same time, the price of pepper in the domestic market dropped from 120,000 VND to less than 100,000 VND/kg, making the situation of the domestic market and producers worried. India is a very important market for Vietnam’s pepper. In 2016, the output of Vietnamese pepper exported to India reached over 11,000 tons, ranking third only to the United States and the United Arab Emirates. India’s demand for pepper imports from Vietnam is forecast to reach 15,000 tons in 2017. In recent days, Indian businesses are also anxious to see the Government suspending pepper import orders. The government will soon remove it so that businesses can perform commercial contracts signed with partners.
In the context of high pepper production, again in the harvest season, the decision to remove the Order to suspend the import of pepper from Vietnam has really brought vitality to the whole industry. From today, exporters can boldly send goods to India.
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