The joint director of imports at FSSAI, Raj Kumar, informed the nodal agencies that the directive was received from the Department of Commerce after certain apprehensions regarding the quality of the imported pepper surfaced. There is a possibility that the Vietnamese pepper being diverted through Sri Lanka may be contaminated with a high dose of pesticide residue.
Consequently, the department officials have been asked to be vigilant on such imports.
Nishant R Gurjer, who is a member in the Executive Committee of The United Planters' Association of Southern India (UPASI) and one of the leading planters of pepper, said that while production has stagnated, demand for the same is growing at rapid scale in the country.
To utilise this opportunity, cheap pepper is coming from Vietnam through Sri Lanka, with whom India has signed an FTA.
The problem is heightened as many traders, who buy imported pepper, sell them off as Indian pepper, which has a name for being of better quality.
According to reports, pepper imports usually attract a duty of 70 per cent. As far as imports from Vietnam is concerned, a duty of 54 per cent is levied on imported pepper- a provision under an ASEAN agreement.
However, under SAFTA, pepper from Sri Lanka attracts a duty of just 8 per cent, making Sri Lanka an entry point for a section of traders to route Vietnamese pepper.
According to industry experts, Vietnam accounts for almost one-third of the world's total pepper production. Prices are also lower in Vietnam as they range between $5,000 and $5,200 per tonne, while in India the price stands at $9,000 tonne. (Business Standard)
