Pepper imports into the nation have decreased with increase in the international price of the commodity. With pepper prices in Vietnam and other sources rallying up in the last one year, the difference between the domestic price and international price has narrowed down deterring imports, Spices Board sources said.
For Q1, imports have fallen by 8.4%, according to the figures provided by Spices Board. The imports for April-June 2007 were 4,350 tonne as against 4,750 tonne during the same period last year. Imports during 2005-06 were to the tune of 16,870 tonne and for the fiscal 2006-07 the imports came down to 15,750 tonne.
Duty free imports are possible for value addition and re-export, but the increase in international prices has made imports unviable from some sources, traders said. The average price for pepper in Vietnam has increased over the years from $1,196 per tonne in 2004-05 to $2,055 in 2006-07.
While the Indian prices have moved up from $1,701 in 2004-05 to $2346 in 2006-07. Currently all other origins are quoting at a premium compared to the Indian price.
However, pepper imports from the neighboring Sri Lanka have doubled for the first quarter of the current fiscal. The imports stood at 1,890 tonne as against 900 tonne for the same period last fiscal. Under the bilateral agreement with Sri Lanka, duty free import of spices is permitted. Traders said that the high pipperine content of the Sri Lankan pepper makes import attractive to the oil and oleoresin industry. Pipperine content in Sri Lankan pepper is 9% as against 5% in Indian pepper.