Replantation to be carried out across 68,000 hectares

Rs 360 cr to be raised via special fund.

Jairam Ramesh, minister of state for commerce, said 68,000 hectares of black pepper plantations would be re-planted within the next few years so as to increase production of the spice.

Addressing a press conference here today, he said Rs 360 crore would be needed for the prupose, which the government will raise through a special purpose pepper fund, similar to the rubber fund.

The funding for the project will be soucred with through the Spices Board, Nabard, state governments and other related bodies.

India has 200,000 hectares under pepper cultivation, but because of aging of plants productivity is very low compared to other countries such as Vietnam.

He said the state government had agreed to initiate a re-plantations in two districts, Idukki and Wynad, where a major quantity of pepper is being produced. The ministry of commerce would provide the necessary assistance.

Ramesh announced that the pepper export subsidy scheme had been extended further and it would go on till the targeted 20,000 tonne is exported.

The ministry had announced the export subsidy scheme in November 2005 and the time frame for the target was fixed as March 31, 2006. But so far also around 4,000 tonne has been exported, according to estimates by the Spices Board.

The minister said that the scheme, which is WTO compatible, would go on till the export target is achieved. Subsidy will be given at the rate of Rs 7 a kg (Rs 5 for overseas transportation and Rs 2 for domestic transportation) on a first-come"�first-served basis.

He also said that he would be in touch with his Pakistan counterpart to increase the exports to Pakistan, as the neighbouring country is one of the largest consumers of pepper. Pakistan currently imports the spice from countries such as Vietnam and Sri Lanka.

He added that the advent of imported pepper from Vietnam is not a threat to the Indian market as pepper of Vietnam is of a lower grade, mainly used for making value-added products like oleoresin and oil.

But import from Sri Lanka is the real threat since there is a free trade agreement between India and that country. He said the government will address the issue and come up with a solution soon.