Decline in pepper prices

Why is it in the news ?
  • Farmers of Kerala and Karnataka are hit by sharp decline in pepper prices.
  • Karnataka and Kerala are the two major pepper producing States in the country.
More in the news
  • Black pepper prices have crashed from ₹760 a kg in 2017 to ₹490 a kg and then to ₹290 a kg.
  • Causes behind the drop in prices:
  • Increasing inputs.
  • Low production owing to various diseases affecting pepper vines and climate vagaries.
  • Influx of imported pepper from Vietnam via Sri Lanka.
  • Cheap Imports:
  • The cheaper commodity from Vietnam continues to flood the market through Sri Lanka, aided by a low-duty.
  • 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).
Source
The Hindu.
Posted by Jawwad Kazi on 31st Oct 2019
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