Pepper exports meet full year target in nine months

Black pepper achieved the export target for the current financial year in the nine months between April and December 2006. Spice exports of 20,000 tonne in the nine months were up by 65 per cent over the corresponding period last year.

Although the country's black pepper carried the highest tags in 2006, the surge in exports was owing to the export subsidy scheme announced in October 2005.

Total export earnings stood at Rs 203.53 crore, 20 per cent higher than the target of Rs 170 crore. In the same period last year, the country had shipped 12,091 tonne of pepper valued at Rs 101.97 crore.

According to the scheme, exporters can avail of a freight subsidy of Rs 7 a kg (Rs 5 as ocean subsidy and Rs 2 for domestic transportation). The subsidy gave the country's exporters a lead over their counterparts in Indonesia and Vietnam. With the subsidy continuing till the end of the current financial year, the total exports are set to exceed the target by 25 per cent.

According to top exporters here, applications for the subsidy to export 18,000 tonne of the spice have been filed with the Spices Board so far. Applications for another 2,000 tonne would be filed soon, they added.

Jojan Malayil, a leading exporter, said it was the subsidy that saved the industry from a crisis. He added that the commerce ministry would initiate action to extend the scheme for another 20,000 tonne, so that the country could perform better in the next season.

Meanwhile, the global pepper market is poised for a stronger season. As Brazil, Indonesia and Malaysia have sold a chunk of their produce, the global market will be centred on India and Vietnam for the next 3 to 4 months.

Taking advantage of the crop estimate, Vietnam has quoted higher tags for ASTA at $2,800-2,850 a tonne, close to India's $2,900. Leading exporters pointed out that the current global pricing pattern is favourable to India. Vietnam's current tags for 500 gmiter are $2,350 and $2,525 for 550 gmiter.

It is also learnt that farmers of Vietnam would not rush to sell pepper, as inter crop coffee is fetching better prices this season. This will encourage them to hold back black pepper for better realisation. The harvesting will pick up there by the end of the next month, after the Vietnamese new year celebrations.

Harvesting has started in provinces such as Dong Nai and, according to estimates, production would be around 110,000 tonne, marginally lower than that in the last season.

The carry-over stock in Vietnam is around 3,000 tonne and farmers expect a good season ahead with exporters receiving enquiries from West Asia and Europe.

On the domestic front, production is picking up in Kerala and pepper from Karnataka will hit the market within next 3 to 4 weeks, according to latest reports.