Kochi, Aug 21 (UNI) Merchants questioned the import of black pepper for a higher price of Rs 550 a kg from Sri Lanka when the domestic price has touched Rs 350 per kg.

Despite the huge difference in price, 1445 tonnes of pepper was imported from Sri Lanka within six months.

According to trade sources here, a total of 738 tonnes of pepper was imported from Sri Lanka in July alone. The Centre decided to regulate import in order to help the pepper farmers get a fair price.

Following this, the lowest price of imported pepper was fixed at Rs 550.

According to the South Asian Free Trade Area, eight per cent tax also should be paid in addition to the price and this increased the price to Rs 550 per kg.

Within seven months, 12,991 tonnes of pepper was imported from several foreign countries. Majority of them were imported to extract the essence from pepper and residue sent back.

But the remnants of the pepper after extracting were brought to the market. Only 10 per cent of the pepper contains the essence and the remaining 90 per cent is only waste, traders said.

As per rules, the waste pepper should be destroyed. However, it is sold in the market after mixing with good quality pepper. The pepper price drops considerably due to this, they said.

The farmers in Kerala were in crisis as the price do not increases even when pepper has huge demand in North Indian states, said Kishore Shamji, the coordinator of Indian Pepper and Spice Traders, Farmers, Producers and Planters Consortium.

When pepper is available at a low price in the country, importing it from other countries for a higher price is mysterious. A complaint had been filed with the government requesting to appoint the central agencies to investigate these transactions, Shamji said.

UNI GKN CS 1330