Lok Sabha Question No. 373 (UNSTARRED), answered on 2017-12-18
Subject: Import of Cheap Quality Pepper
Ministry: COMMERCE AND INDUSTRY
Asked by: PINAKI MISRA

## GOVERNMENT OF INDIA MINISTRY OF COMMERCE & INDUSTRY (DEPARTMENT OF COMMERCE)

## LOK SABHA UNSTARRED QUESTION NO. 373 TO BE ANSWERED ON 18 th  DECEMBER, 2017

## IMPORT OF CHEAP QUALITY PEPPER

## 373. SHRI PINAKI MISRA:

Will the Minister of COMMERCE & INDUSTRY ( वा ͨणÏय एवं उɮयोग मंğी ) be pleased to state:

- (a) whether  the  prices  of  superior  quality  pepper  have  fallen  due  to  increase  in  its production and if so, the details thereof;
- (b) whether it is a fact that the cheap and low quality Vietnamese pepper is finding its way into India through Sri Lanka under the South Asia Free Trade Area Agreement which  is  severely  impacting  the  pepper  growers  in  the  South  Indian  States, particularly Kerala and Karnataka; and
- (c) if  so, the measures proposed to be taken by the Government to stop the unethical inflow of inferior quality of pepper of Vietnam through Sri Lanka so that the prices of pepper get stabilized and its growers are protected?

## ANSWER

okf.kT; ,oa m|ksx ea=ky; esa jkT; ea=h ¼Jh lh- vkj- pkS/kjh½

## THE MINISTER OF STATE IN THE MINISTRY OF COMMERCE AND INDUSTRY (SHRI C. R. CHAUDHARY)

- (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 cheap pepper from other  origins  into  India.  The  production  and  average  domestic  prices  of  pepper  during the  last  two years and in the current year are given below:
- (b):  Representations have been received from traders/growers associations of pepper in the country including  the  States  of  Kerala  and  Karnataka  regarding  alleged  import  of  low  quality  pepper  into India  from  Vietnam through  Sri  Lanka.    Since  most  of  the  pepper  producing  countries are  in  the Association of Southeast Asian Nations (ASEAN) region, the stakeholders have raised apprehensions  of  routing  the  pepper  produced  in  ASEAN  countries  including  Vietnam,  to  India

| Year                     |   Production (Tons) |   Average Domestic Price (Rs. per kg) |
|--------------------------|---------------------|---------------------------------------|
| 2015-16                  |               48500 |                                655.22 |
| 2016-17                  |               57000 |                                694.77 |
| 2017-18(April- November) |               64000 |                                499.73 |

through Sri Lanka, by utilizing the provisions of India Sri Lanka Free Trade Agreement (ISLFTA) and Agreement on South Asian Free Trade Area (SAFTA).

(c):  In order to stop the possibility of inferior quality pepper of other countries entering into India through Sri Lanka to take duty advantage and to stabilize the domestic prices of pepper, Government has fixed the CIF  value  of  Rs.500/-  per  kg  as  Minimum  Import  Price  for  Black  Pepper  vide  DGFT  Notification  dated 6/12/2017.

Sri Lankan Authorities have been requested to exercise extreme care and diligence in issuing the Certificates of Origin under ISLFTA and SAFTA. Government of Sri Lanka has informed that Sri Lanka Customs along with Ministry of Primary Industries and National Quarantine Service have introduced a new procedure with the aim of preventing Sri Lankan exporters from obtaining SAFTA or ISLFTA Certificates of Origin issued by the Department for third-country black pepper shipments destined to India.

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