Pepper Oleoresin Export May Dip
In the face of rising pepper import from Vietnam and Indonesia, the Central Govt has suspended duty-free pepper imports from all origins except Sri Lanka.
"We have now suspended the issue of advance licences for pepper. So, no pepper will come in now which is going to be duty-free other than by our Trade Agreement with Sri Lanka," said the Union Commerce and Industry Minister, Mr Kamal Nath, in the Lok Sabha on Wednesday. A formal notification will soon be released.
Though the decison will help domestic producers, it is likely to affect Indian oleoresin industry adversely. At present, pepper import under normnal trade route attracts a customs duty of 70%. With suspension of duty free import - the input cost of oleoresin industry will go up as it relies on imported immature pepper which is not available in domestic market in required quantity.
December 18' 2004
