Pepper may get Rs 15 cr export incentive

Pepper may get Rs 15 croreexport incentive from ministry of commerce.This is Rs 5 crore less than Spices Board recommendations.

Pepper and cardamom export incentive scheme framed by the ministry of commerce is likely to get green signal in a few days.The much awaited scheme has been tabled for clearance from the commerce ministry.

"Indian pepper is totally out of the international market because of the lowering of price by Vietnam. Indian pepper price is more than the international price and almost 20,000 tonne of pepper is there with farmers and traders, waiting for favorable export condition. International buyers are negotiating with the traders but without the export subsidy Indian pepper can't compete in the world market," said market sources.

The export incentive is framed to leverage the dipping pepper export from the country. The scheme implementation process will be undertaken by Spices Board after getting the approval of the ministry.

The suggestions in the scheme are mainly to lift the export surplus value and to improve the infrastructure for the export. Freight subsidy is also expected to be in the package.

Spices Board has proposed Rs 210 million subsidy for the export of pepper and cardamom. But after the discussion the panel under the commerce secretary S N Menon submitted the scheme for the approval of the minister.

Pepper exports from India had declined in 2004-05 to 14,150 tonne from previous year's 16,635 tonne as the commodity became uncompetitive in the international market against the same from Vietnam, the largest producer of pepper in the world.

Value of pepper exports consequently came down to Rs 121.40 crore, from Rs 142.77 crore in 2003-04. The country also has a strong domestic demand for pepper.