Trade calls for renegotiating duty concession for pepper to curb imports
Surging imports of black pepper have evoked a call from the traders for taking measures, including the re-negotiation of the duty concessions and fixing a minimum import price for the spice to protect the domestic growers.
Aswath Balaji, COO of Hectar Global, a Chennai-based agri-trade startup, said pepper imports into India from Sri Lanka and Vietnam have been on the rise, resulting in lower prices for the crop in the domestic market.
He pointed out that landed consignments of Sri Lankan pepper were clearing Indian ports for under ₹650/kg and retailing around ₹675, while comparable Indian garbled grades still commanded about ₹700 – even after a 5 per cent slide over the past three weeks. Masala manufacturers are snapping up these cheaper imports, while other buyers remain on the sidelines, expecting further declines, he said.
Fix MIP
The new Sri Lankan crop, due from June, will add more downward pressure, especially with the Indo Sri Lanka FTA letting the first 2,500 tonnes in duty free and charging just 8 per cent beyond that, keeping landed costs well below domestic offers, he said.
Balaji urged the government to consider re-negotiating free trade agreements with Sri Lanka, South Asia and ASEAN countries; fixing a minimum import price above domestic market rates; strengthening monitoring mechanisms to ensure fair trade practices; improving market access for Indian pepper in global markets and providing incentives for high-quality domestic production.
Higher production and productivity by adopting scientific cultivation practices, improving quality, reducing input costs and promoting value addition such as oleoresin extraction will aid the above measures, he said
On the export desk, he said Indian pepper is quoted at roughly $8,650/ tonne, a clear premium to Sri Lanka ($7,200), Vietnam ($7,100), Brazil ($7,000) and Indonesia ($7,500). Imports from Sri Lanka have already reached 24,000 tonnes in 2024-25, up from 14,000 tonnes last season, while India’s own crop is projected to shrink to 75,000 tonnes from 126,000 tonnes. Against this backdrop, any rally in domestic prices is likely to be capped unless policy action or currency moves shift the equation, Balaji said.
Exports up
In 2025–26, production is projected at 76,000 tonnes, down from 126,000 tonnes in 2024–25. Production has reportedly also been impacted in Sri Lanka and Vietnam.
India’s annual pepper demand is estimated at around 60,000 tonnes and continues to grow, driven by increased health consciousness, culinary use and medicinal applications. A carryover stock of around 50,000 tonnes is expected to ease supply pressures. This surplus also enables India to continue exporting pepper. From April to February 2024–25, India exported over 19,000 tonnes worth $80.23 million, an increase of 18 per cent in volume and 40 per cent in value over the previous year.
Published on May 19, 2025
