The Hindu : Business : Pepper export under subsidy scheme to touch 8,000 tonnes

Online edition of India's National Newspaper
Saturday, Mar 11, 2006

Business

Business

Pepper export under subsidy scheme to touch 8,000 tonnes

Staff Reporter

Spices Board receives 130 applications seeking subsidy

KOCHI: Export of pepper under a subsidy scheme announced by the Union Ministry of Commerce late last year is expected to be around 8,000 tonnes this financial year.

The scheme, which had been proposed by the Spices Board, is available for the first 20,000 tonnes of exports.

According to Spices Board sources, 130 applications have been received so far by the Board seeking export subsidy under the scheme.

This accounts for about 4,000 tonnes, and applications for another 4,000 tonnes are expected before the end of the financial year.

It is likely that the subsidy scheme will be extended beyond the present March 31 deadline so that the initial target of 20,000 tonnes can be met.

However, the extension is subject to approvals from various Union Government departments, sources added.

The Ministry had accepted the subsidy proposal to boost pepper exports in the wake of stiff competition from countries such as Vietnam.

The World Trade Organisation-compatible subsidy proposal, submitted to the Ministry in April last year, had envisaged an expenditure of a little over Rs. 21 crores in backing upgrading of quality and subsidies for internal and international transport.

The Kerala State Cooperative Marketing Federation (Marketfed) had procured 4,775 tonnes of black pepper at Rs. 75 a kg during the last season with a view to propping up prices. This lot too stands to gain from the export subsidy scheme.

Pepper exports during the first nine months of the current year have shown an upward movement.

Exports during the period stood at 12,050 tonnes, estimated at Rs. 101 crores, while during the same period in the previous financial year, the quantity of pepper exported is 10,490 tonnes, estimated at Rs. 90 lakhs.

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