Question : Import and Production of Pepper

(a) whether the Government has noticed that the huge import is causing fall in price of pepper in the domestic industry and if so, the details thereof;
(b) whether the Government will consider raising import duty of pepper and if so, the details thereof;
(c) the details of import of pepper in the last three years and the current year; and
(d) the details of annual consumption and production of pepper in the country during the last three years and the current year?

Answer given by the minister

THE MINISTER OF COMMERCE AND INDUSTRY
(SHRI PIYUSH GOYAL)
(a) The domestic prices of pepper have fallen primarily due to decline in international prices owing to higher production and supply of pepper in the international market and also due to import of pepper from other countries into India. The price of black pepper has been showing declining trend since the year 2017-18. The average price of black pepper during 2017 -18 in domestic market was Rs. 473.73 per kg, which has declined to Rs. 378.21 per kg during 2018-19.
(b) Government is imposing a duty of 70% from 2007 onwards on import of pepper from all countries other than those covered under Trade Agreements and import under Advance Authorization Scheme for value addition and re-export. In addition, the imposition of Minimum Import Price for black pepper has helped to arrest steep fall of pepper prices and reduce imports. The estimated import of pepper into India in the year 2018-19 was 24950 Metric Tons as compared to 29650 Metric Tons in the year 2017-18, registering a decline of 15.9%.

(c) The details of import of pepper in the last three years and the current year are given below;
Year Quantity (MT) Value (Rs.Lakhs)
2015-16 19365 116296
2016-17 20265 111590
2017-18 29650 109084
2018-19 (Est.) 24950 77991
(Est) : Estimate
Source: DGCI&S Kolkata/DLI from Customs

(d) The details of annual consumption and production of pepper in the country during the last three years and the current year are given below;

Year Production (MT) Domestic Consumption (MT)
2015-16 73555 50000
2016-17 62080 55000
2017-18 70878 58000
2018-19 (*) 62144** 58000
(*) Projection
Source: Production: Directorate of Arecanut and Spices Development, Calicut, Kerala.
Consumption: International Pepper Community, IPC, Jakarta

** All districts of Kerala and five districts of Karnataka were affected by heavy rain, flood and landslide, damaging plantations resulting in low production during 2018-19.

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