Kochi firm gets highest subsidy for pepper export

Bafana Enterprises, a Kochi-based spices processing and export company, received the highest amount of freight subsidy of Rs 1.5 crore under the pepper export subsidy scheme during 2006-07 (April-March), a company official said today.

It had shipped 3,350 tonnes of Indian pepper, he said. The commerce ministry had provided Rs 7 a kilo as freight subsidy to boost pepper exports from the country during 2006-07.

The subsidy was limited to exports up to 20,000 tonnes of the commodity. India exported 28,750 tonnes of pepper during the year. Top seven exporters received around Rs 8 crore out of the total subsidy amount of Rs 14 crore during the year. Kishore Shamji, another leading exporter, received Rs 14 crore under the subsidy scheme by exporting 3,000 tonnes.

In 2006-07, Bafana Enterprises had exported pepper to non-traditional markets such as Taiwan, Philippines, and Dominican Republic, the official said.

"New markets may appear insignificant in terms of quantity and value but they have helped to sustain momentum of exports during the year," said Ratanlal Bafana, chairman, Bafana Enterprises.

Supply squeeze in Vietnam from later half of 2006 might have prompted buyers from these places to turn to India, he said. "We have made a good beginning in non-traditional markets like Taiwan and we hope to build on it in coming days," he said.

India's pepper exports to Taiwan rose to 236 tonnes during 2006-07 compared with 30-40 tonnes in the preceding years, according to a Spices Board official.