Idukki: Despite no increase in import duty on raw spices, Kerala spice traders have temporarily stopped exporting value-added products made from spices such as oil and extracts to the US. This step has been taken due to the uncertainty arising from the possibility of the US imposing additional duty on these products.
Idukki district mainly cultivates cardamom and black pepper, which are exported to Gulf countries and European markets. However, oil and other products extracted from pepper, ginger and cardamom are mainly sent to the US. Traders fear that the new duty policy of the US may seriously affect the sector, although there is no impact on the prices of raw spices at present.
Industry sources say that if this ban on exports continues for a long time, it will affect the oil extracting companies and exporters, as well as farmers of Idukki, Wayanad and other spice producing areas may also face a crisis. Apart from this, exports of cash crops like turmeric and coffee are also expected to be affected.
Sangita Vishwanathan, Chairperson of the Spices Board, said, “Spice oils and chillies are our major exports to the US. If demand decreases due to high duty, it will directly affect the farmers. The government should waive the cess and provide support for purchases.” She also suggested that exporters should look for alternative markets.
However, some people believe that not all spices will be affected. Cardamom farmer and trader Baby Pulparambil said, “I don’t think this policy will affect the cardamom sector much.” But he also admitted that if the ban on exports continues for a long time, farmers will need a relief package.
Exporters have made it clear that until it is clear whether additional duty will be imposed or not and if so, how much, shipments to the US will remain halted. Amidst this uncertainty, Kerala’s spice industry is going through a crisis.
