Lok Sabha Question No. 306 (UNSTARRED), answered on 2021-02-03
Subject: Import of Pepper
Ministry: COMMERCE AND INDUSTRY
Asked by: Hibi Eden

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

## LOK SABHA UNSTARRED QUESTION NO. 306 TO BE ANSWERED ON 03 rd FEBRUARY, 2021

## IMPORT OF PEPPER

## 306. SHRI HIBI EDEN

Will the Minister of COMMERCE & INDUSTRY ( वा�ण�य  एवं  उ�योग मं�ी ) be pleased to state:

- (a) whether the Government has observed on increasing competition in International market with regard to pepper;
- (b) if  so, the measures being taken by the Government to increase pepper export through various ports of India;
- (c) whether the Government is aware of the fact that there has been an increase in the import of  pepper  from  Sri  Lanka  to  Indian  markets  despite  India  being  one  of  the  largest producers of pepper globally;
- (d) if so, the details thereof; and
- (e) the measures being taken by the Government to cut the import of pepper to India?

## ANSWER

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THE MINISTER OF STATE IN THE MINISTRY OF COMMERCE AND INDUSTRY (SHRI HARDEEP SINGH PURI)

(a) & (b):   Indian pepper is facing competition in the international market from other major pepper producing  countries  like  Vietnam,  Brazil,  Indonesia,  Malaysia  etc.  India  produced  61000  MT pepper in the year 2020 which accounted for about 10% of total global production. Indian pepper is one of the most expensive varieties of pepper in the W orld market.

V arious export promotion programmes are being implemented through the Spices Board to assist  exporters  in  boosting  export  of  spices  and  spices  products,  including  pepper.  Besides encouraging adoption of scientific practices, the Spices Board focuses on ensuring quality and food safety in the entire spices supply chain. The major thrust areas are trade promotion, product development & research, infrastructure development, promotion of Indian spice brands abroad, setting up common infrastructure for cleaning, grading, processing, packing and storing of spices in major spice growing/marketing centres, organizing Buyer Seller Meets etc. Special programmes are also undertaken for the development of the spices sector in the North Eastern Region.

(c) to (e):   There was an increase in import of pepper from Sri Lanka in the year 2017-18. Due to various measures taken by the Government, import of Pepper from Sri Lanka has been showing declining trend since 2018-19. The quantum of import of pepper has reduced from 13673.95 MT in 2017-18 to 5178.89 in 2019-20.

Government had fixed a 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. Moreover, the Government imposes a duty of 70% on import of pepper from all countries other than those covered under Trade Agreements and the Advance Authorization scheme.

Further,  on  the  request  of  the  Government  of  India,  Government  of  Sri  Lanka  has introduced a new procedure to prevent issue of Certificates of Origin for third-country black pepper shipments destined to India.

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