The Hindu Business Line : Global pepper output seen declining

Global pepper production in 2007 is projected to be less than that of 2005. There has been a decline in 2006 also. The total fall in production when compared with the output in 2005 will come to 48,270 tonnes.

The situation was discussed at the 37th Pepper Exporters Meeting held at Kandy, Sri Lanka, early this month where the output for 2007 was projected at 2.66 lakh tonnes as against 3,14,270 tonnes in 2005 and 2,69,900 tonnes last year, according to International Pepper Community (IPC) sources.

Production of black pepper in most producing countries, such as India, Indonesia, Brazil, and Malaysia, would decline significantly, they said. Total production of black pepper in 2006 is estimated at only 2,19,900 tonnes as against 2,63,270 tonnes in 2005. In the case of white pepper, although production in China and Vietnam increased, total production in 2006 declined marginally to 50,000 tonnes as production in Indonesia declined from 13,000 tonnes in 2005 to 5,000 tonnes in 2006.

The drop in white pepper production in Indonesia has resulted in shifting black pepper for converting into white pepper. This has led to an additional decline in the availability of black pepper in the world market, market sources told Business Line.

Consequently, exports of pepper fellin 2006 with a further projected drop in 2007. As against the shipments of 2,12,500 tonnes in 2005, total exports in 2006 are estimated at 1,97,600 tonnes, while the export projection for 2007 is 1,81,000 tonnes. Exports of black pepper declined to 1,66,800 tonnes in 2006 and that of white pepper from 33,150 tonnes to 30,800 tonnes.

The total decline in exports in 2007 compared to that in 2005 is estimated to be 31,480 tonnes.

Stock carryover at the end of 2006 is estimated at 64,430 tonnes comprising 55,170 tonnes of black and 9,260 tonnes of white pepper

In the light of the reported decline in world output at the IPC session, producer prices of black pepper continued to move up sharply at all centres.

In Kochi, prices moved up by three per cent last weekend and as much as 10 per cent in Kuching, Malaysia and in Vietnam, while in Lampung prices increased by 11 per cent. Free-on-board (f.o.b.)prices kept pace with producer price levels, moving up by two per cent in Kochi and seven per cent in Kuching, Malaysia.

In Bangka, the producer prices of white pepper shot up sharply by 11 per cent while Kuching reported a marginal increase. At f.o.b. level, white pepper prices jumped by six per cent in Kuching to $3800 a tonne, while Ho Chi Minh reported $4,200 a tonne for the week ended September 15. Prices at Haikou, China, moved to close $2,900 again with more buying interest than sellers, the sources said.

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