Lok Sabha Question No. 904 (UNSTARRED), answered on 2018-07-23
Subject: Import of Black Pepper
Ministry: COMMERCE AND INDUSTRY
Asked by: BHAGWANTH KHUBA

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

## LOK SABHA UNSTARRED QUESTION NO. 904 TO BE ANSWERED ON 23 rd  JULY,2018

## IMPORT OF BLACK PEPPER

## 904. SHRI BHAGWANTH KHUBA:

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

- (a) whether  the  Government  is  importing  black  pepper  from  Vietnam  and  if  so,  the details thereof;
- (b) whether the local farmers are suffering from rate down from Rs. 700 to Rs. 380 in the last six months and if so, the details thereof;
- (c) whether the imported black pepper is of low quality as compared to our market and it is mixed with many other things;
- (d) if so, the details thereof along with the reaction of the Government thereto; and
- (e) whether the Union Government has received any requests from certain States like Karnataka, Goa and Kerala or from public representatives/ NGOs to stop import of pepper and rise the prices for local farmers and if so, the details thereof?

## ANSWER

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

(a ): No Madam. The Government is not importing black pepper from Vietnam. However, pepper is imported from Vietnam and other countries by Indian processors for value addition and re-export. The import of pepper from Vietnam into India during the last three years is given below:

| Year                  | Quantity (MT)   |   Value (Rs.Crore) |
|-----------------------|-----------------|--------------------|
| 2014-15               | 10,845          |             520.33 |
| 2015-16               | 6,780           |             404.2  |
| 2016-17               | 9,500           |             477.85 |
| 2017-18 (Provisional) | 10,825          |             367.56 |

(b) to (e): 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 due to import of cheap pepper from other origins into India. The average domestic price of pepper was reduced from Rs. 694.77 per kg in the year 2016-17 to Rs. 473.73 per kg. in the year 2017-18, which was further reduced to Rs. 359 per kg. in June, 2018.

Several representations have been received from State Governments, public representatives, growers associations  etc  regarding  the  drastic  fall  in  price  of  pepper.  The  various  steps  taken  up  by  the Government to address the concerns raised includes inter-alia, the following:

- (i) Vide  DGFT  Notification  dated  6/12/2017,  Union  Government  fixed  Rs.500/-  per  kg  as Minimum Import Price for Black Pepper.
- (ii) Subsequently, amendment was brought out in the Minimum Import Price (MIP) Notification by  making  import  of  pepper  over  &  above  Rs.500/-  per  kilogram  free  and  import  below Rs.500/ per kg. - prohibited vide DGFT Notification dated 21/3/2018.
- (iii) To prevent import of cheap pepper from other countries taking advantage of the provisions of India-Sri Lanka Free Trade Agreement (ISLFTA) and Agreement on South Asian Free Trade Area  (SAFTA),  Sri  Lankan  Authorities  have  been  requested  to  exercise  extreme  care  and diligence in issuing the Certificates of Origin.
- (iv) Instruction has been issued to authorized officers of Food Safety and Standards Authority of India (FSSAI) and field formations of Customs to be vigilant at the point of entry in the ports in order to stop the possibility of entry of inferior quality pepper from other countries.

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