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Pepper exports subsidy: Spices Board to receive no more applications

Staff Reporter

KOCHI: The Spices Board has received applications for subsidy on pepper exports for a total quantity of 20,000 tonnes, the upper limit fixed for providing freight subsidy to exporters.

The Board has informed exporters that no more applications would be accepted for freight subsidy under the WTO-compatible subsidy provided by the Union Commerce Ministry through the Spices Board.

The subsidy, offered to pepper and pepper products, was introduced in September 2005 and the applications were accepted on a first-come-first-served basis.

It was at the initiative of the Spices Board that the subsidy was introduced with a view to boosting pepper exports and to help pepper-growers get remunerative prices. Under the scheme, international freight subsidy was fixed at the rate of Rs.5 a kg or the actual cost incurred (whichever is less) and at the rate of Rs.2 a kg for internal transport or the actual cost (whichever is less). Only pepper produced in India was eligible for the subsidy.

Thanks to the subsidy, export of black pepper, which formed a significant portion of spices export from the country, is expected to move up substantially during the current financial year.

Pepper exports stood at 16,700 tonnes during the last financial year. The exports had earned $31.71 million. In the previous year, export of pepper stood at 14,150 tonnes worth a little over $27 million.

Pepper exports formed 6.1 per cent of the total spices export value during the last financial year. During the period, it also accounted for 5.2 per cent of the quantity.

During 2004-05, pepper formed 5.5 per cent of the value and 4.2 per cent of the quantity. This was substantially lower than in 2003-04, when pepper formed 7.5 per cent of the total spices export value and 6.5 per cent of the volume.

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