Black pepper exports up 35% in Apr-Aug

Black pepper exports are currently buoyant thanks to the 'Advantage India' position in the global market. The country is poised for the biggest exports in the last 6-7 years according to the current trend in pepper exports.

India shipped around 13,900 tonnes of pepper during April-August period of the current financial year, up 35 per cent, from the year-ago period.

During April-August 2006-07, India had exported 9,100 tonnes, which was 2931 tonnes more than the exports in 2005-06. According to leading Kochi-based exporters, total exports might cross 30,000 tonnes by March 2008, which will be the highest since 2000. The country's exports during last financial year was 28,750 tonnes.

The Spices Board has set an export target of 30,000 tonnes in FY08 and has already achieved 46 per cent within 5 months signalling a much better performance. Leading exporters said that on an average 3000 tonnes were being exported every month and the trend is likely to continue in the coming months also because of the lowest price tag India offers currently.

They added that the stipulation in the position of the near month contract is a major hurdle for a better performance as the exporters are not in a position to take the advantage of lower price in futures trading. The rate of the near month contract is far below the spot price, but the curb on open position restricts the exporters from taking advantage of lower prices. In spite of repeated pleas from various stakeholders like India Pepper and Spice Trade Association and All India Spices Exporters Forum, Forward Markets Commission is still going ahead with the 170 tonnes limit.

FMC had dropped the limit in order to curb excessive speculation and the high range of volatility, but it failed to control these. India would have been performed much better on the export front if the squeezing of limit had been withdrawn earlier, a prominent exporter said adding India had lost the chance to export 2000-3000 tonnes more during the April-August period.

Meanwhile, there may be a shift in pricing towards the north as a squeeze in the stock position is widely predicted the world over.

India has only 20,000 tonnes in stocks including around 11,000 tonne with the three national commodity exchanges. Vietnam has 30,000 tonnes and is very keen on making white pepper because of its heavy demand from China.