Court stay, lack of clarity in policy stall poppy seed imports

Poppy seeds imports have fallen by 58 per cent in recent years in the absence of a clear-cut import policy, and the repeated stay on imports imposed by the courts.

Imports stood at 10,210 tonnes, valued at ₹183.79 crore, in 2015-16, against 24,075 tonnes, valued at ₹268.48 crore, in 2011-12, according to Spices Board sources.

India has for long been a net importer of the commodity, under Open General License, based on permits issued by CBN Gwalior.

Trade sources in upcountry markets told BusinessLine that in the absence of a uniform import policy for the commodity, the import issue has gotten entangled in legal issues before the Karnataka and Chennai high courts. The courts have stayed the imports, which have therefore remained stalled for two years now, the sources said.

Importers point out that import permits are issued by draw of lots for import of poppy seeds from the Czech Republic and from Turkey, and the permits are valid for four and six months, respectively. In the case of China, the import validity period is for two months, but permits are issued to everyone; in some cases, double permits are also issued.

However, following the court orders staying the imports, applications for import permits from China and the Czech Republic were sent back; in addition, 500 applications for imports from Turkey are still pending with the Narcotics Control Bureau, importers said.

“It is high time that the Union Finance Ministry intervened in this issue,” Dhirish Momaya, a Bangalore-based importer, told BusinessLine .

“The authorities concerned must be directed to return all applications for import permits from Turkey, besides obtaining the crop quantity from Turkish Grain Board (TMO),” he said.

“A fair policy that gives sufficient time to apply and for the issue of permits on fair terms should also be in place,” Momaya added.

The Indian crop is estimated at around 5,000 tonnes. Short supply due to poor indigenous crop and stoppage of imports have pushed up prices to ₹350 a kg; prices seem certain to move up further given the delay in imports.

In the international markets, prices are in the range of $2,500-$2,800 a tonne.

Indigenous production used be around 20,000 tonnes, but of late, it has declined due to unfavourable weather conditions and the NCB’s effort to reduce area under poppy seed cultivation, the sources said.

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