KARACHI, Jan 31: The enormous smuggling of spices into Jodia Bazar has led to oversupply position, making the smuggled commodity cheaper by five to 10 per cent as compared to items arriving through legal imports.

According to Chairman, Pakistan Kiryana Merchants Association (PKMA), Haji Usman, smuggled spices like cloves is being sold at Rs25,500-26,000 per 40 kg as against Rs27,000, arriving through legal channels.

Similarly, black pepper, arriving through illegal routes, is being sold at Rs100 per kg as compared to Rs135 per kg at Virjee Street in Jodia Bazar. Smuggled cardamom is being sold at Rs650-700 per kg as compared to imported at Rs900. Smuggled American almond (smuggled) is priced at Rs260 per kg as compared to Rs290 per kg.

“As many as five to six containers loaded with smuggled spices are arriving in Jodia Bazar every week,” Haji said. These items later loaded on trucks usually arrive in Virjee Street, Jodia Bazar between 7 p.m. to 12 p.m.

He said he had written a letter to President Gen Pervaiz Musharraf two days back, informing him that “the government is losing Rs2 million in taxes and revenue on each truck.”

In his letter, he said that majority of importers had stopped opening fresh letters of credit (LCs) after losing the market share as people were buying smuggled items.

Haji said smugglers, after using the umbrella of Afghan Transit Trade (ATT), had found new routes and avenues after September 11 incidents. Smuggling is being done from Peshawar and from Dubai to Bandar Abbas Port (Iran) to Islam Qilla and then to Quetta and after in Khuzdar, the commodity reaches to Karachi.

Throughout the journey, which is around 300 miles from Quetta to Karachi, none of the departments concerned stop these trucks, the letter said. Pakistan’s annual imports of spices range between 10,000 to 12,000 tons.

The Pakistan Commodity Traders Association (PCTA) has also taken up the case of smuggling in spices with the interior and finance ministers, urging them to take immediate steps.