Pepper exporters may have to share subsidy

Pepper exporters may have to share part of the export subsidy with their buyers abroad by offering discounted prices, traders said. Most importers are aware of the subsidy scheme and are quoting prices accordingly, said Jojan Malayil, a leading exporter.

Many exporters have received import inquiries that take into account the subsidy amount, Malayil said.

"There is no harm in sharing part of the subsidy with the importers. But the problem arises when some importers demand that the entire amount be given to them," he said.

The commerce ministry had late last month approved a subsidy scheme of Rs 7 per kilogram for pepper exports. The subsidy comprises a maximum of Rs 2 per kg for internal transport and a maximum Rs 5 for international freight.

The Spices Board, the government agency implementing the scheme, has, however, clarified that exporters are entitled only for the actual expenditure incurred on internal and international freight, subject to the maximum amount specified under each category.

"This makes it clear that exporters need not get Rs 7 per kg for for the quantity of their exports. We need to convince importers in this regard," said an exporter in Kochi.

"Some importers are insisting on a discount of Rs 7 per kg citing the subsidy scheme." The price of

Indian pepper in the international markets is currently almost on par with that of other origins.

Vietnam is quoting $1,375-1,400 per tonne, while the Indian price is $1,400-1,450 per tonne, traders said. Hot issue

Exporters may have to share the subsidy with buyers abroad

Importers who are aware of the scheme are quoting prices accordingly

The subsidy is Rs 7 per kg of pepper

Indian pepper is quoted on par with other origins internationally