US blues for black pepper traders

Black pepper exporters across the world are facing serious trouble in dealing with US importers, including those in India.

The issue is of light berry (immature berry) content, they say. If the content in every lot of pepper is above two per cent, the exporter has to pay one per cent as tolerance allowance to the buyer. If more than three per cent, the lot is rejected, as failing the American Spice Trade Association (Asta) standard.

Top exporters told Business Standard every time an export sample to the US is tested in the laboratories of the Export Inspection Agency (EIA) here, in those of the Spices Board or private ones, the light berry content is normally 1.1-1.2 per cent. But a section of US importers complain that when it is tested in the leading labs there, the content is usually above two per cent and sometimes more than three per cent.

All consignments from India to the US or Canada carry a test tag from the EIA, as it is mandatory there. Other destinations, including the European Union, do not insist on this as India’s MG1 grade is well accepted, as a top-quality product. Exporters from other major producers such as Brazil, Indonesia and Vietnam are also facing this problem. A fifth of all global exports go to the US.

“Maybe the methodology adopted by labs there (USA) makes the difference. But there are no issues with other importing countries, including Canada, about the light berry content. This long-pending issue should be resolved, otherwise exports to the US will be affected very badly,” said a top exporter.