Centre imposes restriction on import of cardamom

In light of notification, cardamom can be imported only if Cost, Insurance and Freight value is Rs 500 or above per kg

Centre has banned the import of cardamom, in both small and large grades, with CIF (Cost, Insurance and Freight) value below Rs 500/Kg.

Also the Department of Commerce, in a notification ordered that import of inferior quality cardamom would not be allowed.

Import of Cardamom which does not meet the quality standard/Specification of Food Safety and Standards Authority of India (FSSAI) will not be allowed, the notification said.

In the light of the notification, cardamom can be imported only if the CIF value is Rs 500 or above per kg and on payment of import duty at the rate of 70%, besides meeting the quality standards specified under FSSAI.

Based on the samples drawn and sent to the Spices Boards' laboratories analytical reports will be issued for releasing the consignments at various ports, Spices Board said.

Under this, the minimum import price (MIP) of the spice will be Rs 500/Kg. Cheaper grades come to India even at price below Rs 300/Kg, which dominates local markets in north India and is being widely used in Pan products. Smuggling is also active through Bangladesh and Nepal boarders.

This affects the local farmers heavily as there is a sharp fall in prices in the domestic market. Growers told Business Standard that they should get at least Rs 750/ Kg in order to continue with cardamom growing. The advent of imported cardamom caused serious drop in prices during the main harvesting season. Since this is an off season now, price in local auction trading has increased to Rs 890/Kg (Average quality), while best quality fetched Rs 1169/Kg today.

As a measure to sustain the domestic cardamom industry and to control on the reported large scale import of inferior quality cardamom, especially from Guatemala, Spices Board had taken up with the Department of Commerce, for imposing minimum import price and also ensuring the quality of imported cardamom. In response to the Board's proposal, the Department of Commerce, has issued a notification on 6th of this month.