Merchants and growers of black pepper fear incurring losses as the market rate of pepper has fallen by 50%.
Growers have urged the Central government to intervene and come to their rescue.
The price of pepper has randomly decreased from Rs 600 to Rs 300 per kilo. Moreover, merchants have not been purchasing pepper from farmers.
Many growers have been cultivating pepper in their plantations as an alternative crop. Pepper would come to the rescue of farmers when coffee prices dip. This time, growers expected a rate of Rs 500 per kg as the yield was good.
During the previous year, the Central government intervened and increased the import price of pepper to stabilise the market rate.
With the slash in price, many buyers in Chikkamagaluru, Kodagu and Hassan districts have stopped purchasing the spice crop.
Reason
The main reason for the drop in pepper rate is said to be the pepper imported from Vietnam.
Poor quality pepper enters India via Sri Lanka, Bangladesh and Nepal. Pepper is purchased at around Rs 180 per kilo in Vietnam and is transported to India, to be sold in the local market.
A farmer in Kalasa took the extreme step and ended his life after he incurred a loss in pepper cultivation recently.
Naiz from Balehonnur said that post GST, various taxes on pepper were cut. But, in Karnataka, the APMCs are imposing 1.5% tax on pepper. This has become a burden on the merchants from North India.
Merchants who used to purchase tonnes of pepper are now purchasing pepper from Kerala as they can save up to Rs 4,500 on every tonne of pepper.
A progressive farmer from Koppa taluk, Dr Krishnananda and other farmers have urged the Central government to announce a support price of Rs 500 per kg on pepper to support the farmers.