Low Production Likely To Shrink Pepper Exports

 Vietnam has pushed India to third position in the global pepper market and exporters now foresee competition from Sri Lanka and Brazil.

India's average production of pepper is 65,000 tonnes in the last three years and the country exports 20,000-22,000 tonnes a year. Unfavourable weather in Kerala and Karnataka may cause production to decline to 53,000 tonnes in 2015-16. Production in Vietnam may rise 10 per cent to 150,000 tonnes.

"Indian production has declined and competing nations have raised their output in recent years," said Jojan Malayil, chief executive officer at Bafna Enterprises, an export house in Kerala.

The Spices Board has estimated 53,000 tonnes of pepper production in 2015-16 against 65,000 tonnes a year ago and exports are likely to be 20,000 tonnes.

"Unfavourable weather in Kerala and Tamil Nadu caused the fall in production. Some parts of Karnataka, too, have faced a pest attack," said A Jayathilak, chairman of the Spices Board.

India consumes 80-85 per cent of its production but this year pepper prices have climbed, making exports unviable. "Lower production has raised Indian pepper to over $10,000 a tonne while Vietnam is offering the spice at $7,500 a tonne," Malayil said.

Low production likely to shrink pepper exports
The price of pepper has risen from Rs 630 per kg in December to Rs 700 now.

The Indian spice industry feels the country needs to import 20,000 tonnes of pepper to meet demand for value addition. "We need to import about 20,000 tonnes this year against 17,000 tonnes last year," said a Kochi-based spice trader.

Of the 10,000 tonnes black pepper imported between April and September, the major chunk is from Sri Lanka and Vietnam.

According to Jayathilak, the carry forward stock in world markets this year will be 17,000 tonnes lower because of rise in consumption. In India, the carry forward stock for next year will be 2,598 tonnes against 9,598 tonnes in the current year.

 

Soucre :.business-standard.com