Turmeric importers await green-light for release of consignments from Colombo Port

• Importers renew calls to release consignment, saying stocks were imported based on No-Objection letters issued by relevant Govt. authorities
• Department of Export Agriculture recommended release based on demand, shortages in local market 
• Indian HC wrote to Fin. Min. Secy., seeking intervention on behalf of small, medium traders of both countries
• All stocks imported in April before Govt. stopped issuing No-Objection letters, importers say
• President said last week he would not go back on import restrictions imposed on items such as turmeric

By Chandani Kirinde

Despite intervention by the Indian High Commission in Colombo as well as recommendations from the Department of Export Agriculture to release thousands of kilos of imported turmeric lying at the Colombo Port, the Customs Department is refusing to do so, importers claim.

Over 200,000 kilos (203.28 MT) of dried turmeric consignments had been imported from Chennai and Tuticorin in India in April this year, but importers are unable to clear the stocks due to restrictions placed on imports of turmeric by the Government. While the Government imposed restrictions on the import of turmeric and set a fixed Maximum Retail Price of Rs. 750 per kilogram of turmeric powder in April, the stocks of turmeric were imported based on No-Objection letters issued by the Department of Export Agriculture.

While it was decided by the Plantation Industries Ministry not to issue No- Objection letters for turmeric imports from 10 May, such restrictions were not in place in April, importers say.

The matter of the imported turmeric remains unresolved, despite intervention by the Indian High Commissioner in Colombo Gopal Baglay, who wrote to the Secretary to the Ministry of Finance S.R. Attygalle on the matter in July.

It was a follow-up to a letter the High Commissioner sent in June, regarding the difficulties faced by Indian exporters following the non-clearance of turmeric shipments at Colombo Port. In said letter, the High Commissioner requested the intervention of the Finance Ministry Secretary in clearing the consignment, which will “relieve the avoidable difficulties faced by small and medium traders of both countries.”

While the Finance Ministry informed Customs to hold the consignment without forfeiture following the Indian High Commissioner’s letter, the stocks are yet to be released.

Meanwhile, the Department of Export Agriculture informed the Import-Export Controller General in April that a decision had been taken by the Plantation industries Ministry to recommend the release of the turmeric consignment already imported into the country, after reviewing the consumer demand and the shortage of turmeric supply in the country. It had given the go ahead to release stocks imported by eight importers between 3 -22 April. The total quantity was 203.28 MT.

The importers say they are willing to pay the due levies and taxes if the stocks already in the Port are cleared, and promise to sell them at the fixed price of Rs 750 per kg. At present, a kilo of turmeric is selling at over Rs 4500 in the black market due to shortages, they say.

The last consignments of imported turmeric were cleared in January and March this year, while the last stocks imported were in April.

President Gotabaya Rajapaksa said last week that he would not go back on import restrictions imposed on items such as turmeric, saying that prices of several consumer goods, including turmeric, have risen due to decisions taken to uplift local agricultural industry and the farming community.

He said if turmeric and other commodities are imported to control or bring prices down, the desired objective will never be achieved.