Indian growers worried over Lankan pepper harvest | Daily News


 

Indian growers worried over Lankan pepper harvest

The start of Sri Lankan pepper harvest season has put Indian growers on tenterhooks, as they fear slippage of the commodity into the domestic market.

According to traders, it is not officially permitted to sell Sri Lankan pepper into the domestic market below the MIP (minimum import price) of Rs.500 per kilogram.

However, with the harvest, the island nation is under pressure to sell the commodity in the wake of a price drop to $3,000 per tonne from $4,000 for 550g/l pepper.

Kishore Shamji of Kishor Spices said that there could be selling pressure from Sri Lanka for re-exports to India by export-oriented units. Due to the price drop, many extraction companies from India opt for Sri Lankan pepper. Earlier, they used to buy Vietnam pepper at $2,000, when Sri Lankan price was at $4,000.

Meanwhile, the Kochi pepper market on Monday remained steady at Rs.307 per kilogram for ungarbled varieties, and the quantity offered was 10 tonnes. However, the removal of APMC cess of 1.5% in Karnataka is likely to witness improved arrivals, as was witnessed in the previous day with 32 tonnes, he said.

According to Shamji, the domestic demand from Bengal, Jharkhand, Bihar was a bit slow, as the trade is anticipating the influx of smuggled Vietnam pepper from Bangla border. However, the major markets in Maharashtra, Gujarat, Madhya Pradesh, and Rajasthan are yet to normalize and big processors are still not in a position to start operations in full swing.

The buying is also slow in Delhi, which is also a big market supplying to nearby states. Moreover, the terminal market in Kochi may witness more arrivals in the coming days, as farmers would come forward to part with their stock to meet the school admission expenses of their wards. However, it is to be seen that they would be ready to sell their produce at the declining prices, Shamji said. (Hindu Business Line)


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