(November 14) – With a preferential import tax rate under the South Asian Trade Agreement (SAFTA), pepper imported from Sri Lanka has flooded the Indian market during the past 5 months.
Farmers in Karnataka picking pepper
It is estimated that since the beginning of 2017, there have been more than 11,000 tons of pepper imported from Sri Lanka, which has led to a sharp drop in the price of pepper for Indian farmers, especially in recent months, according to trade sources of India. Business Line.
While the South Asian Trade Association (SAFTA) agreement only allows the import of pepper from Sri Lanka at about 5,000 tons, in order to supplement the increasing domestic demand, especially since pepper production India’s decline is very significant because of the epidemic and India is no longer the leading pepper producer in the world.
At the 45th Annual Meeting of the International Pepper Community (IPC), held in Candy – Sri Lanka, India said that this year it will import 18,000 tons of pepper, an increase of 2,000 tons compared to 2016.
India’s report estimates this year’s production at 57,000 tons and expects 2018 production to reach 64,000 tons as the weather conditions are currently proving very favorable, while domestic demand next year will be around 58,000 tons compared to only 55,000 tons this year, and so they expect pepper exports to continue to grow thanks to the quality of Indian pepper which is very competitively priced in the international market.
Yesterday, Monday, 11/13pepper from the plains was traded for Rs 410/kg, while pepper from Karnataka was sold for Rs 390/kg, roughly the same price as imported pepper from Sri Lanka.
Spot prices fell further by Rs 100 to Rs 40,900/quintal ($6,251/ton) for bucket pepper and Rs 42,900/quintal ($6,557/ton) for pre-processed.
On the commodity exchange NCDEX, November delivery fell by Rs 1,205 to Rs 39,000 per quintal and December delivery fell Rs 1,100 to Rs 41,000 per quintal (equivalent to $5,961/ton and $6,266/ton). .
The export price of MG1 special pepper is at $6,750/ton (c&f) for European delivery and $7,000/ton (c&f) for delivery in the US.
* According to the report of the General Department of Vietnam Customs, October 2017 exports reached 11,039 tons of pepper of all kinds, with a turnover of USD 50.94 million, down 18.3% in volume and 21.6% in value. value compared to the previous month but increased by 21.0% in volume and decreased by 20.9% in value over the same period last year. The average export price of pepper in the period reached 4,614 USD/ton, down 3.95% compared to the average export price of September 2017. Accumulated in the first 10 months of 2017, Vietnam exported 192,235 tons of pepper of all kinds, with a total export value of 1.02 billion USD.
* Exchange rate: 1 USD = 65,4273 Rupees.
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