Question : Import of Pepper

(a) whether the domestic black pepper market is witnessing lower prices and subdued demand as compared to last year and illegal imports is the reason behind it and if so, the facts thereof;
(b) the details of the total production of black pepper in the country;
(c) whether the import of pepper has increased during the last three years;
(d) if so, the details of quantum and value of pepper imported during each of the last three years and the current year, country-wise;
(e) whether the Government has imposed a Minimum Import Price (MIP) for pepper to protect the interests of domestic pepper growers and if so, the details thereof;
(f) whether pepper is smuggled into India from Vietnam, Bangladesh, Nepal and Sri Lanka in the backdrop of country’s exchequer loss on import duty;
(g) if so, the action taken/proposed to be taken to stop unscrupulous and unchecked imports of low priced black pepper in the country; and
(h) whether the Government is bound by ASEAN agreement to import pepper from member countries at cheaper rate?

THE MINISTER OF COMMERCE AND INDUSTRY
(SHRI PIYUSH GOYAL)
(a) The price of domestic black pepper during the last three years has shown decreasing trend:-


Year Average domestic
price of pepper (MG1) at Cochin (Rs/Kg)
2016-17 694.77
2017-18 473.73
2018-19 378.21
Source: Spices Board India
It is assumed that the domestic price of black pepper has fallen primarily due to decline in international prices owing to higher production and supply of pepper in the international market and also due to increased import of pepper from other countries into India.
The domestic demand for black pepper has been increasing during the last three years. The details of domestic consumption of pepper during the last three years are given below:-
Domestic consumption of pepper in India
Year Domestic consumption(MT)
2017 55000
2018 56500
2019(Estimate) 57000
Source: International Pepper Community

(b) Details of the total production of black pepper in the country during the last three years are given below:-

Year Area (hectare) Production (tonnes)
2016-17 134,281 62,080
2017-18 139,487 71,488
2018-19 138,929 62,425

Source: Directorate of Arecanut and Spices Development, Calicut, Kerala







(c) & (d) Details of quantum and value of pepper imported during each of the last three years and in the current year, country wise, are given below:




Country 2016-17 2017-18 2018-19(P) 2019-20
(Apr-Aug)(EST)
Qty.
(MT) Value
Rs.lakhs Qty.
(MT) Value
Rs.lakhs Qty.
(MT) Value Rs.lakhs Qty.
(MT) Value
Rs.lakhs
Sri Lanka 4900 32830 13660 55169 7800 37986 2003 7842
Vietnam 9500 47785 10825 36757 10900 23653 6657 11129
Indonesia 5000 26000 2320 8141 4050 9761 1034 2350
Brazil 500 2950 1980 6558 1900 4978 956 1528
Others 365 2026 866 2458 300 1614 340 686
Total 20265 111591 29650 109084 24950 77991 10990 23535
(P) – Provisional, (Est) : Estimate
Source: DGCI&S Kolkata/DLI from Customs provided by the Spices Board India.
(e) In order to reduce the import of pepper and to stabilize the domestic price of pepper, Government had fixed the CIF value of Rs.500/- per kg. as the Minimum Import Price for black pepper vide Notification of Directorate General of Foreign Trade (DGFT) dated 6/12/2017. Subsequently, an amendment was brought in the Minimum Import Price (MIP) notification by making import of pepper at or above Rs.500/- per kg. free and import below Rs.500/- per kg prohibited vide DGFT Notification dated 21/3/2018.
(f) & (g) Some representations regarding smuggling of low priced black pepper from other origin to India through Nepal and Bangladesh border were received. In this regard, the field formation of Customs and Directorate of Revenue Intelligence have been alerted and made vigilant at the point of entry in the port to detect and prevent entry of inferior quality pepper, from other countries to India. Customs has booked several cases of attempted smuggling of pepper in the recent past.

Further, on the request of the Government of India, Sri Lanka Authorities have introduced a new procedure to prevent issue of Certificates of Origin for third-country black pepper shipments destined to India. Sri Lanka Authority has also provided access to Indian authorities to examine the scanned copies of Certificates of Origin issued for black pepper exports under ISFLTA and SAFTA and temporarily suspended import of spices including pepper to Sri Lanka through the Entreport Trade and Commercial Hub Operations to prevent these spices being reshipped to India.

(h) Under ASEAN Agreement, import of pepper is allowed at 51% import duty (with effect from 1st January, 2019) against the normal duty of 70% for import from countries not covered under trade agreements.
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