The Hindu Business Line : Global pepper prices remained low despite drop in output

In fact, the estimated decline of eight per cent in production, from 3,23,480 tonnes in 2004 to 2,94,770 tonnes in 2005, did not affect prices positively till the later part of 2005, according to International Pepper Community (IPC) sources.

The relatively large stock carryover from 2004, estimated at over one lakh tonne, and lower exports, held prices at a lower level for most of the year.

Exports in 2005 amounted to 2,09,115 tonnes, 7 per cent less than 2,25,785 tonnes exported in 2004, they said.

However, towards the end of 2005, the prices showed some upward movement, raising the hopes of millions of farmers in the producing countries.

Reports of a significant decline in the 2006 crop in India and a marginal decline in the Vietnamese crop caused this upward push.

It is still too early, however, to predict the price movement this year.

Green pepper

Green pepper in different forms such as dehydrated green pepper, freeze dried green pepper, green pepper in brine and pink pepper in brine, are also marketed from some producing countries, including India, Malaysia and Sri Lanka.

During the year, the average export price of dehydrated green pepper was around $3.95 per kg and freeze dried green pepper was $19.30 per kg.

Average prices of other green pepper products were $1 per kg for green pepper in brine and $2.20 per kg for pink pepper in brine.

Organic pepper

The average price of organic pepper during the year was slightly higher, up at $3.80 per kg from $3.50 per kg in 2004.

Pepper oil & oleoresin

Pepper oil and pepper oleoresins are important value-added forms of pepper. India is one of the traditional exporters of these items.

The average price of pepper oil during the year was $17.80 per kg, while pepper oleoresin was $11.50 per kg.