The cabinet yesterday approved to provide a Rs.150 per kilogramme subsidy for pepper growers until the pepper prices reach the levels seen early this year.
As reported in Mirror Business this week, the Primary Industries Ministry had proposed to the cabinet to provide a Rs.200 per kilogramme subsidy per kilogramme of pepper.
However, the cabinet had only approved a Rs.150 per kilogramme subsidy.
The subsidy will be in effect until the market price of pepper reaches Rs.900 per kilogramme. Currently, pepper is trading between Rs.700-800 per kilogramme.
Oversupply from large-scale pepper producers such as Vietnam and Cambodia are pushing the pepper prices down in the global market.