The Hindu Business Line : Pepper availability may be hit next year

In India, harvesting of 2007-08 crop is expected to be delayed because of the incessant heavy rains in the growing areas in September. The output is also projected to be less by 15-20 per cent from that of the previous year due to widespread damages caused by the rains, according to growers. The production in 2006-07 is estimated at around 45,000 tonnes.

The crop in Vietnam is also reportedly to be less by 10-15 per cent to 85,000-90,000 tonnes as against over one lakh tonnes last year.

Meanwhile, reports emanating from Brazil of late indicate that production is estimated to be somewhere between 30,000-35,000 tonnes instead of the earlier projection of 40,000-45,000 tonnes.

Even growers in certain regions of the country have reportedly confirmed that the crop is “much lower than expected”, Brazil Pepper Trade Board has reported.

Besides, the report said arrivals of pepper had been much less than what it used to be during end-September when the harvest is at its peak. Similarly, exporters were quoted as saying that their warehouses, which used to remain full by this time, were almost half empty.

Due to dry weather conditions, the crop in north of Espirito Santo has reportedly dropped significantly from what has been expected. Good crop is harvested only from the areas having irrigation facilities.

Total output

Another report said the total production in 2007 would come to around 2.11 lakh tonnes as against 2.66 lakh tonnes in 2006 consequent to decline in output in India, Vietnam, Brazil and Indonesia.

Besides, in India a substantial portion of the carry-over stock would get depleted this year and would have a negative impact on the total availability next year. Add to this, there is a growth in consumption by about three per cent pushing up the demand.

Total stock as on October 1 is said to be around 15,000-18,000 tonnes. About 9,950 tonnes are in the exchange warehouses.

On the other hand, if the suggestion of the International Pepper Community that the producing countries should absorb 20 per cent of their total output is strictly implemented, it would lead to a squeeze in surplus stock, cutting down making the availability further reduced, trading sources pointed out.