India's spice industry is concerned about increasing imports of black pepper from Sri Lanka since August despite domestic prices in neighboring countries falling below the minimum import price (MIP) set by the Indian government. India
Source: The Economics Times
According to the Indian Association of Traders, Pepper Growers and Spices in Kerala, a large amount of pepper from Sri Lanka began shipping to the country in August, according to The Economics Times.
This happened at the time pepper prices in Sri Lanka it was down to USD 2,800 / ton from USD 3,800 / ton while MIP price in India was USD 7,000 / ton (equivalent to 500 rupees / kg).
“About 700 tons pepper is shipped from Sri Lanka to India at MIP rates and many shipments will continue to be exported in September with a total of more than 1,000 tons, ”said Kishor Shamji, coordinator of the Association.
The Association wrote a petition to Finance Minister Nirmala Sitharaman about the abuse of MIP price to profit to more than 4,000 USD / ton, possibly violating the Foreign Exchange Control Act. Therefore, the purpose of MIP imposed by India to protect the interests of pepper farmers completely failed, Mr. Shamji said.
In Sri Lanka, pepper prices were around 200 rupees per kg, much lower than 300 to 325 rupees per kg in India. “Indian Customs only checks whether the import invoice is at the MIP price. They do not consider the market value of imported raw materials, according to the market value in the exporting countries or in India ”.
