India has been accused of imposing an unrealistic Minimum Import Price (MIP) on Sri\ Lankan Pepper and Arecanuts resulting in negligible exports.
The Management Committee of the Spices and Allied Products Producers and Traders’ Association (SAPPTA) in Sri Lanka, said that Sri Lanka exported around 75% of Pepper Exports and almost 100% of its Arecanut exports to India.
The MIP on Pepper is INR 500 whereas the local market is INR 200 (LKR 500).
According to SAPPTA, in the case of Arecanuts, 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 said.
In the meantime, SAPPTA said that stocks of these commodities remain unsold with farmers who continue to agitate with prices declining.
SAPPTA questioned the use of Free Trade Agreements if such restrictions prevent exports.