Small scale spices exporters in India may get affected with this hike in spices testing fees. The spice board has increased the analytical charges for testing of samples of spice manufacturing units. This change has been introduced in the market since June 1. 14% of service tax is imposed by the government.
The price has been increased and now exporters need to pay Rs. 200-1000 per sample to analysts. This is not only mandatory for small scale and large scale exporters, but also the private/ customer samples get affected with this price hike.
Reasons Why Sampling is Important
- Sampling helps companies to determine the premium quality standards hold by the spices that are brought for exports.
- Sampling is important as it tells the exporters about goodness carried by their spices.
- In case any exporter’s spices fail to pass analyzing tests, they will not get exported to other countries. Or even if exporters manage to supply those low quality spices to other regions, they won’t get good price for them.
- Every exporting business needs to perform analyzing test for its products to ensure optimum deals in future.
The Spices Board terms this analyzing testing as a normal procedure, but experts think that the raise of service tax from 12.6% to 14% will definitely impact on small scale spice exporting units. Spices will automatically get expensive and due to costly spices and labor, exporters will face tough time. Sampling is now mandatory as government has issued this latest standard for all exporting companies. Since developed countries are major source to get exporting deals, government has taken this initiative to provide good health to their people.
When the good quality spices are supplied to the USA, Japan, and other European countries, Indian economy will also get affected in positive way. May be this price hike will impact on small scale exporters who supply their products among native consumers, but large scale spices exporters in India will get affected with minimum rate.