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The pepper trade has asked the Chairman of Spices Board to take up with the Directorate-General of Foreign Trade (DGFT) of the anomalies/mistakes in the Merchandise Exports from India Scheme reward given for black pepper in the recently announced export-import policy.
A group of exporters who have facilities to process pepper here has alleged that the announced rates will only benefit those who process pepper in their in Vietnam and are exporting from there. On the other hand, those undertake the processing in India adhering to the “Make in India” concept of the Prime Minister, and exporting, will be hit, they said.
They said, according to new policy, the reward for black pepper garbled (processed) is only for emerging and focus markets while shipments of ungarbled (non-processed farm-grade) attract 3 per cent incentive. .
Given the efforts to promote “Make in India Products”, the reward announced for the garbled pepper appears to have been wrongly put in a different code. The reward is only two per cent that too, for shipments to traditional, emerging and focus markets.
Most of the European countries, which are traditional markets, are buying garbled pepper from India and therefore, the benefit of the scheme reward of 5 per cent will have to be given to exporters shipping to these countries.
European and other developed nations have slowed down their buying from India and started demanding pesticide residue guarantees. However buyers/importers not specifying any particular pesticides to be tested except a general remark they make while placing order to provide pesticide residue free pepper certificates. When approached about the specific pesticide residuefor testing, a list of 300 pesticides have been provided. The testing for the entire lot of pesticides will cost higher than the pepper consignment itself, exporters said. Therefore, those exporters who are exporting to traditional markets should be given the benefit of MEIS reward of 5 per cent.
The Spices Board, according to reliable sources, is understood to have taken up the matter with all concerned at the Centre.
Exporters have urged the Government to initiate steps to remove the anomaly and issue corrected the rates with effect from April 1.
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