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Pepper prices may rise on short supply

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George Joseph Kochi
Last Updated : Jan 21 2013 | 6:21 AM IST

Global pepper production is estimated at 316,380 tonnes this year — slightly lower than the 318,662 tonnes last year.

Following the meeting in Kochi on Thursday, the International Pepper Community (IPC) said expected black pepper output will be 251,980 tonnes and the remaining (64,400 tonnes) will be white pepper.

According to IPC estimates, Vietnam will have the highest production with 95,000 tonnes followed by Indonesia with 52,000 tonnes and India with 50,000 tonnes.

Lower production would impact the supply of the commodity adversely, and subsequently prices might go up for most part of 2011, except January-April, during harvest in Vietnam. Prices are already on a rise in spot trading. They have risen from Rs 20,800 to Rs 21,300 a quintal due to short supply. Leading exporters said a further shortfall in supply next year will result in higher prices.

Price in the global market, like in Indonesia, crossed the $5,000-a-tonne mark, while in India it is $5,100. The estimated production for 2011 is at 309,952 tonnes — black pepper 244,632 tonnes and white pepper 65,320 tonnes.

Global production of pepper during 2009 was at 318,662 tonnes (black pepper 251,762 tonnes and white pepper 66,900 tonnes). India grabbed the second spot with 50,000 tonnes, behind Vietnam which topped the table with a total production of 100,000 tonnes.

Export
Projected export figures for 2010 is 237,650 tonnes — black pepper at 200,300 tonnes and white pepper at 37,350 tonnes. Vietnam tops the table with export of 105,000 tonnes followed by Indonesia with 44,000 tonnes and Brazil with 34,000 tonnes. With export of 180,50 tonnes India is in the fourth place.

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First Published: Nov 12 2010 | 12:49 AM IST

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