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Pepper exports via Kochi port fell by 43.54 per cent during January-October 2016, while imports increased by 18.25 per cent.
As against 19,116 tonnes in January-October 2015, shipments through Kochi port stood at 10,792 tonnes in the same period this year. Whereas, the imports soared to 14,515 tonnes from 12,275 tonnes last year, according to Cochin Chamber sources.
Much of the Indian imports have been from Vietnam this year.
According to Vietnam General Department of Customs, India has imported 10,399 tonnes — up 33.82 per cent over the previous year and became the third top importer, Kishor Shamji, an exporter, told BusinessLine.
At the national level, total exports might have touched around 11,800 tonnes and the imports at 16,500 tonnes, he said.
Around 90 per cent of the Indian pepper exports, of late, is re-export of imported pepper after doing value-addition such as extraction, grinding and sterilisation.
“Main reason for the decline in exports is the high prices which are ruling much above other origins and as a result, many buyers of Malabar pepper have switched over to Indonesian and Vietnam produce. Consequently, we have lost many of our export markets and it has now become a difficult task for the exporters to regain the lost market from our competitors,” he said.
Export sources attributed the high pepper prices in India to strong domestic demand without a corresponding growth in production.
Add to this is the low productivity and higher production cost in the major growing state Kerala where the productivity per hectare is around 300 kg, they added.
Spot pepper slipsSpot pepper prices slipped further as farmers were releasing their produce. Dealers have slowed down buying hoping for a further fall in prices, while industries — which needs the material now — were buying, market sources told BusinessLine.
On the terminal market, 11 tonnes were traded at ₹650-670 a kg. Spot prices fell further by ₹300 a quintal to ₹66,900 (ungarbled) and ₹69,900 (garbled). January, February and March contracts on the IPSTA stayed unchanged at ₹65,000, ₹63,000 and ₹58,000 a quintal.
Export prices were at $10,600 a tonne c&f for Europe and $10,850 for the US.
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