The domestic pepper farming community in India has raised apprehensions over the likely inflow of Sri Lankan pepper in the wake of reports on the sale of of 500 tonnes to importers in Kerala and Tamil Nadu.
The deal — under SAFTA at 8 per cent import duty on Rs. 500/kg — will work out at Rs. 40 per kg so that the import cost will be around Rs. 265. This will enable importers to sell the commodity in the domestic market at Rs. 300/kg, traders said.
Kishore Shamji of Kishor Spices said that this could be a profitable business venture for importers, since two invoices are prepared by Sri Lankan exporters — one at $7,000/tonne and the other at $3,000 at the actual price.
It is understood that the parties have just contracted a deal in this regard and the consignments are likely to reach Indian ports by mid-June, he said. The Indian farming community has urged the government to stop such illegal pepper imports with double invoice, as it is a clear violation of FEMA rules.
(Hindu Business Line)