The imminent declaration of an export incentive scheme for black pepper by the central government has charged the domestic market with an upbeat mood. | |
| Spot prices increased to Rs 6350 for garbled grade and most forward contracts have pegged at higher level. |
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| C J Jose, chairman, Spices Board said the commerce ministry had already approved the incentive scheme and an announcement would come in a short while. The Rs 27 crore subsidy scheme will be implemented through the board. |
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| The reports have transformed the struggling market to a buoyant one here. The state government has been demanding a subsidy scheme in the light of falling prices for the past three years and the central government is now conceding to state's plea, though after a long wait. |
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| In order to bail out the market, the state government had procured 4800 tonne pepper, at a price tag of Rs 7500 a quintal, through Kerala State Co-operative Marketing Federation (Marketfed) during March - April, 2005. |
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| The government had spent Rs 7 crore for the market intervention operations and it had been assured that there would be an export incentive scheme. |
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| But though Spices Board had submitted the proposal few months back there were difference of opinion between commerce and finance ministries regarding the allocation of funds for the scheme. It is learnt that the finance ministry's opposition had caused the delay in arriving at a consensus. |
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| Meanwhile the government had called a meeting of the various organisations including India Pepper and Spice Trade Association [IPSTA] and Spices Exporters Forum on 22nd in order to discuss the various issues related to pepper industry. |
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| Also the government would explore the possibility of curtailing the imports especially from Sri Lanka, which is one of the main concerns of pepper growers. |
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| Meanwhile, global market is in panic as off take of pepper is very low from importing nations mainly Europe and USA. Indonesia, the most active seller at present is offering ASTA grade pepper at a price tag of $1250-1275. Brazil and Vietnam though not so active quote $1300 while Indian prices are still pegged at $1500-1525. |
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| As per estimates of International Pepper Community (IPC), total global exports of pepper had decreased by 7 per cent during January-June 2005 at 1,00,457 tonne from 108,129 tonne in the corresponding period in 2004. |
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| Import of Germany alone had dropped by 24 percent at 9868 tonne. More than 70 per cent of the total exports was done by Vietnam, Brazil and Indonesia. |
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