Pepper exports to US double to 7,273 tonne

The country's black pepper exports to the US in 2006 almost doubled (98 per cent) to 7,273 tonne from 3,830 tonne in 2005. The steep rise in the pepper trade with the US was mainly attributed to the export subsidy announced by the commerce ministry in October 2005.

Higher prices dragged the country's exports to the US till 2005. Vietnam, Brazil and Indonesia surpassed India on the export front, thanks to the lower price levels that they offered and the aggressive export strategy.

The October 2005 export subsidy (Rs 5 for ocean freight and Rs 2 for domestic transportation) gave domestic exporters a level-playing field with other pepper-exporting nations.

The fact that the Centre has done away with the scheme (as the export target of 20,000 tonne had been achieved by February 1, 2007) will hit the exports to the US in the current year, experts feel.

According to the latest estimates of the US Commerce department, total imports of black pepper increased marginally to 55,498 tonne in 2006, from 52,152 tonne in 2005.

Except for Brazil, India and Malaysia, exports to the US from other producing nations declined slightly.

Vietnam's exports to the US fell to 17,688 tonne in 2006 from 18,259 tonne in 2005. Brazil improved its quantum by shipping 15,622 tonne to the US against 13,934 tonne in 2005, while Indonesia sold 12,939 tonne in US markets, a drop of 663 tonne from the 2005 figure. Equador exported 1,638 tonne, while Malaysia shipped just 338 tonne to the US, taking the total to 55,498 tonne.

As for white pepper, the US imported 7,805 tonne in 2006, up by 557 tonne from 2005. Vietnam exported 3,234 tonne of the variety to the US, while Indonesia and Malaysia shipped 4,571 tonne.