The Hindu Business Line : Pepper production seen lower by 20,000 tonnes

Pepper output in 2006 is estimated to be less by 20,000 tonnes from that of the previous year, while the exports this year is projected to be around 22,200 tonnes, the highestafter 2002.

Last year, 72,000 tonnes of black pepper were produced, while in 2004 and 2003, it was at 62,000 tonnes and 65,000 tonnes, respectively. Exports, however, have been on a declining trend from 2003.

Rise in exports

Shipments in 2005 were at 15,752 tonnes, while it was at 14,049 tonnes in 2004 and 19,423 tonnes in 2003.

In 1997, India exported 37,816 tonnes out of an output of 60,000 tonnes, whereas in 2002 the production touched 80,000 tonnes and then the exports stood at 24,225 tonnes.

The increase in exports this year is attributed to the availability of export subsidy from the Centre, which has helped the Indian parity at competitive levels.

Poor prices

The low prices prevailing in international markets over the last four years have affected pepper holdings adversely. Moreso, in countries with relatively high costs of production output may continue to decline, as farmers reduce inputs to existing holdings, cut back on replanting and rehabilitation, and abandon less productive farms, International Pepper Community (IPC) sources said.

Exports from pepper-producing countries were consistently high at around 2,30,000 tonnes during 2002-2004, but declined by six per cent to 2,16,650 tonnes (provisional) in 2005.

Estimates for 2006 show that exports are expected to decline further, by as much as 15 per cent.

However, this will depend on the level of prices during the rest of the year, as well as production in the main producing countries, they pointed out.

There was a dramatic growth in international pepper production from 1997 to 2003, recording an increase by over 90 per cent during the six-year period.

Less output

In 2006, the producing countries have projected a fall in production , with sharp declines expected in India and Indonesia.

Production is likely to fall to around 2,69,000 tonnes, as reported at the recent IPC meeting in Kandy, Sri Lanka. Production of black pepper almost doubled between 1997 and 2003, increasing from 1,43,900 tonnes to 2,85,700 tonnes.

Production fell in 2004 to 2,67,000 tonnes, and further to 2,63,000 tonnes in 2005. For 2006, production is projected to fall to 2,20,000 tonnes, with the largest fall expected in India.

According to IPC, a significant development worth noting is the increase in pepper utilisation in producing countries, particularly India, in recent years, with a smaller corresponding increase in export of value-added products such as ground pepper and pepper extracts.

The growth of consumption is estimated at 3.46 per cent per annum.

Chinese market

White pepper production has also shown some increase during the last 10 years though not as dramatic as black pepper.

In 1997, production of white pepper was estimated at 47,800 tonnes, growing to 79,500 tonnes in 2004, and declining to 51,000 tonnes in 2005. Production in 2006 is projected to be 50,000 tonnes.

China has, of late, emerged as a major producer of white pepper, with an output of 35,000 tonnes in 2004.

This production, however, is mainly for domestic consumption with little being exported, and in 2005 production fell to15,000 tonnes, as some of the production areas in Hainan were affected by a typhoon.

Production from China is expected to recover to 20,000 tonnes in 2006. In 2006, Vietnam is set to overtake Indonesia as the main producer of white pepper, though its production is projected to decline marginally.

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