Exports of pepper to India at risk

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

The warning was issued after the ministry received notification from the Vietnam Trade Office in India that the Association of Pepper Growers in South India claimed the content of piperine in light black pepper of Vietnam (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 Vietnam did not meet the minimum level of 6%.

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

Vietnam'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 Vietnam.

According to the Vietnam 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 Vietnam’s pepper export was estimated at 166,800 tonnes in the first half of this year, worth US$356 million, a drop of 5.7% in volume and 21.1% in value over the same period last year.

Amid the COVID-19 pandemic, the pepper import demands of Vietnam’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 – VND49,500 per kilogram on August 11.