At 35,000 tonnes, pepper output could be lowest in 2 decades

Pepper production in the current season to December is likely to be the lowest in two decades at 35,000 tonnes.

According to trade estimates, this marks a sharp fall from the already lower production of 50,000-60,000 tonnes over the last few years.

Production in Karnataka is estimated at below 15,000 tonnes, while in Kerala it could be around 20,000 tonnes.

In fact, a section of the trade says that the 35,000 tonnes includes 6,000 tonnes of pepper held at the NCDEX warehouses after being sealed by the Food Safety Commissioner since December 2012.

A prolonged dry period last year, affecting growth of the pepper plant, and incidences of “quickwilt’ disease are blamed for the sharp drop in pepper production.

On the other hand, many growers have switched over to other lucrative crops such as rubber in Kerala’s Pathanamthitta and Idukki districts. Vast stretches of area under pepper have been converted to tourist resorts in Kerala’s Wayanad district.

Many young farmers are complaining about the sustainability of pepper vines, discouraging them from taking up pepper cultivation, said Rajeev, a grower from Wayanad.

However, Joshua Daniel, a farmer in Konni (Pathanamthitta district) said that the current uptrend had encouraged him to plant about 25,000 vines.

Globally, pepper production is declining. Output in Indonesia and Sri Lanka have dropped, while Brazil’s crop has been steady between 30,000 and 35,000 tonnes.

Vietnam has been the only exception, coming up with a bumper crop of 1.35-1.4 lakh tonnes.

As a result, except for Vietnam, pepper prices in all origins have moved up sharply.

In India, the price surge has been sharp in view of substantial domestic consumption compared to other producing countries.

Domestic absorption of pepper is estimated at around 45,000 tonnes and since the overall usage of pepper in food is small, the spike has not affected consumption.

Some Indian exporters have entered into January-March, March-June commitments with overseas buyers, expecting the prices to fall in view of huge production in Vietnam.

Many seem to have not taken into account the huge shortfall in Karnataka’s production. This has resulted in pepper prices soaring to ₹700 a kg.

Therefore, imports during January-March of whole pepper at Cochin port was 4,200 tonnes. Of this, the trade estimates that 1,000 tonnes could have been re-export .

Value-addition could have been done in the whole form itself, while balance of 3,200 tonnes could have been used by extraction units and pepper grinding units. More exports are likely during April-June.

The pipelines are running with bear minimum stocks and traders in Kerala have limited stocks.

On the other hand, farmers and dealers are wary of holding pepper stocks above ₹500 a kg in view of the global prices that are $3,000-5,000 a tonne below Indian prices.

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