The Hindu Business Line : Global pepper production pegged lower by 11 pc

WORLD pepper production in 2004 is provisionally estimated to be around 2.94 lakh tonnes i.e., 11 per cent less than 3.35 lakh tonnes produced in 2003 on drastic fall in Indonesia and a marginal decrease in Brazil, India, Malaysia and Sri Lanka.

However, total exports of pepper from the main producing countries - Brazil, India, Indonesia, Malaysia, Sri Lanka and Vietnam - showed an increase of 13 per cent compared with exports in January-October 2003, according to International Pepper Community (IPC) sources.

During January-October 2004, total exports of pepper increased to 1,91,705 tonnes from 1,68,352 tonnes in January-October 2003.

The increase was due to significant increase in exports from Vietnam and Brazil. Vietnam exported around 98,000 tonnes, which may included a significant amount of pepper shipped across the border to China during 2003 but only declared in 2004, and Brazil 29,300 tonnes against 67,000 tonnes and 24,300 tonnes respectively in January-October 2003.

Exports of black pepper from Lampung also increased from 20,800 tonnes to 25,470 tonnes. Exports from other producing countries including India, Malaysia and Sri Lanka have decreased.

Export of white pepper from Indonesia decreased substantially from 18,850 tonnes to 8,272 tonnes.

Black pepper export increased by 20 per cent, while the export of white pepper decreased by 21 per cent.

Indian exports during January-October stood at 11,250 tonnes against 14,300 tonnes in the same period last year, a decline of 21 per cent. India exported around 850 tonnes worth Rs 6.8 crore in October, 650 tonnes less than in October 2003 and it was also the lowest quantity exported in 2004.

Exports of pepper from the major producing countries in October this year declined compared to October 2003. The total export also declined when compared August and September 2004. The six major producing countries together exported around 15,602 tonnes in October against 22,558 tonnes in October 2003, showing a decrease of 31 per cent.

Black pepper decreased by 25 per cent and white pepper 56 per cent. This decrease can be mainly attributed to fall in exports from Indonesia from 6,640 tonnes in October 2003 to 2,810 tonnes in October 2004.

Exports from other countries showed some decreases. AgainstSeptember, exports decreased around 26 per cent, mainly because of Vietnam.

During October 2004, pepper prices declined further in the local markets of all producing countries. At farm level, the price of Malabar un-garbled has come down from an average of $1,374 per tonne in September to $1,355 in October. Lampung black has come down to $1,059 from $1,075. Sarawak black pepper has declined from $994 to $984.

The prices in October were the lowest monthly average prices recorded in 2004. F.o.b prices followed the trend of prices in local markets. Adequate supplies from Brazil coupled with an expected good crop in early 2005 in India have kept prices at a low level.

F.o.b prices of MG1, Lampung ASTA and Sarawak ASTA were $1579, $1470 and $1450 respectively.

In anticipation of the reported better harvest during the coming crop season in India, the market for pepper was very quiet, with limited activity. During October, the average local price of Malabar un-garbled black pepper at Kochi was $1,355 per tonne, easing slightly from $1,374 per tonne in September. Fo.b prices for MG1, on average, also eased to $1,579 ($1,591).