Kamal Nath talk lifts black pepper

Union commerce minister Kamal Nath's assurance on stopping the import of black pepper has lifted pepper prices, especially in the futures market here.

Prices of May contract have increased to Rs 6,290 per quintal from Rs 6,062 yesterday. June contract surged to Rs 6,500 and October contract by Rs 160 to Rs 7,300 in the morning at the India Pepper and Spice Trade Association (IPSTA). Prices in the spot market too increased.

The minister's statement has caused a surge in pepper trading which has been limping for some time now.

Nath had also agreed to explore the possibility of giving export subsidy to the 5,000-plus tonne pepper procured by the state in the last three months.

The Spices Board had prepared a scheme in this regard to disburse Rs 27 crore as export subsidy. The government had procured pepper at a price tag of Rs 7,500 per quintal while the price was hovering at around Rs 6,000.

Meanwhile, the exporters here said that the decision of the government would not have any impact on the market and the increase in prices is temporary.

The Centre has agreed to stop import, including import through advance licence scheme, of the commodity. But traders said new licences had not been issued after March.

Export-oriented units have already imported pepper in full with the licences they had by March 2005. During March and April, around 2,450 tonne was imported and in the January-April period, 5,000 tonne was imported, mostly from Vietnam.

Hence the new decision will not in any manner affect the market as the condition of the global market is still not favourable for India.