Date:23/07/2005 URL: http://www.thehindubusinessline.com/2005/07/23/stories/2005072302101200.htm

Back Lanka pepper quality comes under scrutiny

G.K. Nair

Kochi , July 22

THE quality of pepper being imported from Sri Lanka has come under scrutiny from the trade as the shipments value is far below the current prices in the global market.

According to trading sources, Sri Lanka pepper is being imported at $1,175-1,275 a tonne. Currently, global pepper prices are being quoted at $1,400 a tonne.

Traders alleged that this gave room for suspicion on the quality of the imports. They alleged that each bag of 50-kg imported pepper contained 1.5 kg of dust and the moisture content was 14 per cent - a level that is not permitted. As per Prevention of Food Adulteration (PFA) Act, the permissible level of moisture in pepper is 12 per cent.

Trading sources said pepper with moisture content above the PFA norm was unfit for human consumption, they said.

When contacted, Spices Board officials said the issue had been referred to the Commerce Ministry.

Trading sources said the imports from Sri Lanka should have been subject to a quality check as per PFA specification. This could made possible if import of pepper is permitted only through selected ports, having plant quarantine office.

Sri Lankan pepper is reported to be available in the domestic market at Rs 55 a kg, the sources claimed.

Import of pepper in to the country has been steadily increasing from mid-1990s and reached 17,725 tonnes last fiscal from 2,292 tonnes in 1996-97. The rise comes at a time when the country produces around 65,000-70,000 tonnes of black pepper annually. As against 5,654.18 tonnes in January-May 2004, imports in the same period in 2005 stood at 7,526 tonnes.

Of this 1,972.7 tonnes of black pepper, mostly from Vietnam and Sri Lanka, were imported through the Kochi port. Around 65 per cent of the import was by the oleoresin industry, while the rest for value addition and re-export.

According to trading sources, the requirement of the oleoresin industry in January-May 2005 might come to around 3,000 tonnes and if that is the case over 4,500 tonnes of pepper must have been imported for positive value addition and re-export.

Since grading, simple cleaning, re-packing of the imported spices under the Advance License Scheme requires only 30-45 days, permitting a period of 180 days for fulfilling the export obligation that too with only positive value addition disturbed the domestic market for spices, they said.

Hence, a minimum period should have to be fixed for fulfilling the export obligation, they said.

Meanwhile, pepper prices ruled steady during the week with marginal improvement on Friday, as buying activity was limited due to increased availability of imported pepper in the domestic market.

The market intervention exercise of the Kerala Government by procuring 4,800 tonnes had so far failed to create any noticeable impact on the market due to increase in imports, market sources here claimed.

Spot pepper prices on Friday were MG 1 Rs 6,150 and ungarbled Rs 5,750 a quintal as against Rs 6,050 and Rs 5,650 respectively at the beginning of the week.

Futures prices were: August Rs 6,342 as against Rs 6,197 on July 18, September Rs 6,351 (Rs 6,207 ), October Rs 6,291 (Rs 6,148), November Rs 6,515 (Rs 6,367 ), December Rs 6,579 (Rs 6,429).