Vietnam black pepper output seen lower

Production of black pepper in Vietnam would be almost at the same level during 2006 as it is in the current year, according to sources at the Vietnam exports market. Official estimates, however, indicated a drop of 20-30 per cent in production.

Vietnam, the world's largest producer and exporter of black pepper, would have a production of 1,10,000 tonne during the next season commencing by the end of January 2006. Total production in 2005 was in the vicinity of 1,15,000 tonne. Major exporters of the country expressed hope that the year 2006, too, would see the same level of production.

They said during this year flowering took place two times, in June and August, which is quite unusual. Earlier, this phenomenon had been witnessed in 2002.

It is widely believed that because of this the crop would be reasonably higher in some provinces. But new plantation in areas like Binh Phuoc, Loc Ninh, Daklak and Gia Lai may affect the total production to some extent, and this is the main reason for the lower production estimates by the official sources.

But exporters said the drought during the first quarter of the current year had not generated serious impact on the harvest and there would be a marginal fall in overall production.

They also said that the total availability of pepper would be higher in Vietnam in 2006 as there is carry over stock to the tune of 17,700 tonne by the end of October 2005. Total exports of Vietnam during January - September 2005 was to the tune of 80,300 tonne and domestic consumption plus cross border trade between China would come around 17,000 tonne.

So according to present indications of global markets price line remains to be at lower level since there would be enough stock in Vietnam throughout 2006.

Meanwhile, a marginal drop has been registered in the import of US during Janurary - August though there is an increase of around 1000 tonne in August 2005. US had imported 32,316 tonne black pepper during January - August while this was 33,867 tonne in the same period in 2004.

In August alone US imported 4540 tonne black pepper against 3592 tonne in the same month last year. Around 65 percent of the total import of US - 3160 tonne - was from Vietnam and Indonesia with 500 tonne grabbed second spot.

Indian export to US during August was 265 tonne and Brazil had shipped 250 tonne. US also imported white pepper to the tune of 4590 tonne in January - August period while the import in August 2005 alone was 750 tonne.