India might tighten pepper imports from Vietnam, ministry warns

ABO/VNS - The Ministry of Industry and Trade urges firms to control the quality of pepper exported to India and develop solutions to cope with policies affecting the export of pepper from Vietnam.

The warning was issued after the ministry received notification from the Viet Nam Trade Office in India that the Association of Pepper Growers in South India claimed the content of piperine in light black pepper of Viet Nam (HS 09041120) did not meet the quality requirements of the India Directorate General of Foreign Trade.

In addition, in an article published in Hindu Business Line, the India Pepper and Spice Trade Association alleged that the piperine content in light black pepper imported from Viet Nam did not meet the minimum level of six per cent.

The Spices Board under the India Ministry of Commerce and Industry could evaluate the minimum piperine content in pepper imported from Viet Nam, which might negatively affect the reputation of Vietnamese pepper as well as causing disadvantages for Viet Nam’s export of pepper.

Farmers harvest pepper in Quang Tri Province. The Ministry of Industry and Trade urges firms to control the quality of exported pepper.

Viet Nam's Ministry of Industry and Trade was cooperating with the trade office in India to verify the allegation and urge the Indian side not to introduce unfavourable policies on the pepper trade between the two countries.

The Vietnamese ministry also urged enterprises and associations to control the quality of exported pepper and prepare for policies on the import of pepper from Viet Nam.

According to the Viet Nam Pepper Association, the COVID-19 pandemic was weighing on pepper exports, which coupled with the unexpected drop in domestic pepper output was challenging the country’s target of exporting 280,000 tonnes and earning US$800 million this year.

Statistics from the General Department of Customs showed that Viet Nam’s pepper export was estimated at 166,800 tonnes in the first half of this year, worth $356 million, a drop of 5.7 per cent in volume and 21.1 per cent in value over the same period last year.

Amid the COVID-19 pandemic, the pepper import demands of Viet Nam’s major export markets, including India, the US and the EU, were anticipated to be low.

The domestic pepper cultivation was also unfavourable, due to climate change, falling pepper prices and diseases.

The domestic pepper prices ranged between VND47,000 – 49,5000 per kilogramme on Tuesday.

(Source: VNS)