Vietnam pepper exports fall 39% in Feb

Pepper exports from Vietnam, the world's leading producer of the commodity, dropped 39 per cent to 2,560 tonnes in February compared with same period a year ago.

Globally, pepper markets are facing a new situation with sellers in the leading producing country opting to stay on the sidelines at the peak of the harvest season, they said.

According to the estimates available with dealers here, nearly 40 per cent of the harvesting operation was over in Vietnam at the end of February.

Fall in exports from Vietnam is will further tighten supply, said Jojan Malayil of Bafana Enterprises, a Kochi-based export firm. Price of pepper may rise further if sellers in Vietnam continue to hold back stocks, he added.

According to Spices Board data, Malabar grade pepper, popularly known as MG1, was priced in New York at $4.32 a kg for the week ended February 29, compared with $4.01 in the previous week. Price of MG1 in New York rose by around 44 per cent to $4.32 compared with a year ago.

Supply from Vietnam is getting tighter when global carryover stock of pepper has been estimated at a lower level of 57,000 tonnes at the beginning of this year compared with 82,000 tonnes last year, dealers said.

Rumours are also rife in trade circles here that total output in Vietnam will be in the range of 80,000-85,000 tonnes in 2008 compared with the earlier estimate of over 90,000 tonnes.

Vietnam's pepper exports slipped by around 30 per cent to 82,804 tn in 2007 (January-December) compared with 117,544 tonnes in the previous year. According to trade circles here, sellers in Vietnam are quoting $3,850 a tonnes (Rs 156,483) for 500GL grade on free-on-board basis while 550GL is priced at $3,950 (Rs 160,547) a tonne.

On the National Commodity and Derivatives Exchange, benchmark April contract was quoted at Rs 15,410 a quintal, up Rs 23 from Saturday's close.