KOCHI: At a time when pepper growers are fighting for better prices for their produce, the spice exporters grievance against the notification on Minimum Import Price (MIP) of Rs 500 per kg got a favourable response from the Centre. Following the representation by the All India Exporters Forum (AISEF), the Centre has excluded the Export Oriented Units (EOUs) and Special Economic Zone (SEZs) from the MIP notification. “We welcome the Centre’s decision to exclude units in the EOUs and the SEZs from the MIP of Rs 500 per kg for black pepper,” said Prakash Namboodiri, chairman, AISEF.
However, the export units have suffered huge losses since December when the notification was first issued, he said, explaining the units continued to import black pepper by paying the penalty. “We request the government to refund the penalty collected. The exporters’ losses are huge in terms of loss of clients and delay in executing orders,” Prakash said.
According to him, both Vietnam and Indonesia, the big pepper producing countries, have now ventured into value-added spice sector, hitting the Indian exporters even though the international prices of pepper have shown a declining trend to Rs 175 per kg due to a glut in production in Vietnam, the domestic prices have shown slight improvement so far this month at Rs 345- Rs 349 per kg range compared to R320-range in July.
“The government has also introduced a Minimum Invoice Price of Rs 500 per kg. This, I think, has stopped the smuggling of the pepper through the Nepal border, increasing the local prices,” said Joshy Joseph Manniparambil, a Kanjirappally-based planter and general secretary of Kerala Farmers Federation (KeFF).
Earlier, some traders were using the loopholes in the notification on MIP to bring pepper via Nepal, he said.