The Spices and Allied Products Producers and Traders’ Association (SAPPTA) alleges that India of imposing unrealistic Minimum Import Prices (MIP) on Sri Lankan pepper and areca nuts, which in return results in negligible exports.
Issuing a media release, the SAPPTA said Sri Lanka has exported around 75 percent of Pepper exports and almost 100 percent of its Areca Nut exports to India.
“The MIP on Pepper is INR 500 whereas the local market is INR 200 (LKR 500),” the release said, adding that in the case of areca nuts, Indian importers are also finding it difficult to clear the cargo at the port of entry.
“Recently the Indian Government Authority instructed our Phytosanitary Department not to issue certificates for the export of Clove Stems, an absolute requirement for the clearing of cargo in India,” SAPPTA’s releases continued.
In the meantime, stocks of these commodities remain unsold with farmers who continue to agitate with prices declining, SAPPTA said.
SAPPTA has questioned the use of Free Trade Agreements if such restrictions prevent exports.
