Mar 26, 2018 (LBO) – Sri Lanka’s Spices & Allied Products Producers’ & Traders’ Association slams India for introducing a minimum import price for pepper charging India for adding another barrier to trade.
The association said in December last year, India introduced a minimum import price for Pepper of Indian Rupees 500 per Kilogram which works out to 7,700 US dollars per metric ton.
As the Sri Lankan Pepper market is around USD 4,600 it is not feasible for importers in India to import Pepper because of this minimum import price, the association charged.
“This is another measure introduced by India to prevent imports of Pepper which is allowed under the Free Trade Agreement,” the association said.
“Besides, shipments that have been made earlier are also being subjected to considerable delay, in their clearance.”
India is the largest consumer of pepper in the world and the second largest producer after Vietnam.
India’s union government said it imposed the minimum import price of Rs 500 per kg (CIF value) on the basis of reports that cheaper imports of pepper were seen putting pressure on the domestic market.
All India Spices Exporters Forum, however, said value-added spice exporters in India have also been facing a crisis and are likely to shift to other countries.