Free Trade Agreement with India

India Blocks Exports Of Spices Using Non-Tariff Barriers 

India has imposed unrealistic Minimum Import Price (MIP) on Sri Lanka Pepper and Arecanuts resulting in negligible exports. Sri Lanka exported around 75% of Pepper Exports and almost 100% of its Arecanut exports to India. The MIP on Pepper is INR 500 whereas the local market is INR 200 (LKR 500). In the case of Arecanuts, Indian importers are also finding it difficult to clear the cargo at the port of entry. Recently the Indian Government Authority instructed our Phytosanitary Department not to issue certificates for the export of Clove Stems, an absolute requirement for the clearing of cargo in India. In the meantime, stocks of these commodities remain unsold with farmers who continue to agitate with prices declining. What is the use of Free Trade Agreements, if such restrictions prevent exports?

  • Management Committee, SAPPTA