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Dumping by Vietnam hits Indian pepper
Why is it in news?
- Due to the unrestricted dumping of Vietnamese pepper, Indian pepper has suffered a sharp erosion in domestic prices.
Details:
- The Indian pepper that commanded a price as high as ₹694 per kg in 2016-17 had been hovering in the ₹350-400 range in the last couple of years.
- Vietnam dumping its pepper in India via Nepal and Sri Lanka has gained momentum in the last couple of years.
- India could import 2,500 tonnes of pepper a year from Sri Lanka without duty, and above the quota, a duty of 8%, under SAFTA (South Asian Free Trade Area).
Other Causes behind the drop in prices:
- Increasing inputs.
- Low production owing to various diseases affecting pepper vines
- Climate vagaries.