The recent hurricane and heavy rains in Vietnam are likely to affect the black pepper production adversely. Though not much shortfall is expected, but output would be badly hit in some provinces such as Gia Lai and Dak Lak.
According to sources, around 400 hectares of plantations were damaged in Dak Lak due to Typhoon 9. In Gai Lai, 500 hectares of pepper vines have been damaged. This is likely to cause a 20 per cent drop in production in these areas for the 2010 season.
So, the overall production situation in Vietnam during the next season is not promising though it is too early to estimate the loss. The next crop season will start from January.
According to the Vietnam Pepper Association (VPA), pepper exports from Vietnam were 111,110 tonnes and fetched a value of $269 million in the first nine months of the current year, an increase of 53.8 per cent in volume and 6.3 per cent in value compared to the same period last year.
In September, export volumes dipped to 14,000 tonnes, although the value reached $38 million, an increase of $1 million over August figures, the association said. Duong Long Tri, deputy director of the Ministry of Agriculture and Rural Development said pepper prices in September were at $2,400 a tonne on an average, higher than earlier this year but still about 32 per cent lower than the average price in 2008.
The production in India is likely to fall as weather conditions are not favourable for the crop. The latest estimates from the southern districts of Kerala indicate a slight fall in output due to untimely rain. Pepper from these districts is expected to hit the market by December. Meanwhile, the reports about a fall in the production have not evoked much enthusiasm at the price front. Appreciation of the Asian currencies forced dealers to adopt a more cautious approach for the time being.