India is now becoming the most attractive destination for global black pepper trade. This is mainly due to the shortage of the spice in other leading producing countries. This market condition is expected to remain for the next five-six weeks, according to leading exporters here.
Exporters told Business Standard that there is an increased interest from buyers from all over the world, especially from Europe and the US as India is having huge stocks. Vietnam and Indonesia, the major producers, are not having much stocks to offer currently.
India is offering MG1 grade at a price tag of $5,000-5,100 a tonne. Vietnam is not quoting any prices and Indonesia’s FoB price is $5,100 a tonne. Brazil, which had some brisk sales last week, offers B-Asta grade at $4,850-5,000 a tonne, but inferior quality is a concern for importers.
Due to rain, harvesting in Vietnam is delayed by two weeks and it is expected to commence only by the mid of February. The crop size is estimated at 100,000 tonnes and exports will be active by the end of February.
This global production scene creates an advantageous position to the Indian market, though India is also having low stocks. Though harvesting has begun, it is estimated that production would be lower than the earlier estimations this time.
According to growers, production may fall 50 per cent due to a marked shift in the climatic conditions. Kochi-based traders said supply of fresh pepper to the terminal market is very low this time and during the last couple of weeks, only two-three tonnes were brought into the market from the southern districts.
The overall production in Kerala will be lower by 30-40 per cent this time and market sources expect that this loss would be compensated partially by the supply from Karnataka. Harvesting in Karnataka will commence by the end of March. The domestic production is estimated to be 40,000-45,000 tonnes this season against a normal crop of 55,000 tonnes.