Ghana now poses a pepper export threat

The country may soon face competition from Ghana after Vietnam in black pepper exports.Indian pepper production monopoly was challenged by Vietnam in the first half of 1990s. Soon,the country became a less important destination for the importers especially from US, Europe and the Middle East.

Black pepper production in the country mainly depends on domestic consumption rather than exports.Currently, the country does not have any impact on the global price line.

The country's position may weaken further as nations like Ghana and Ecuador are taking pepper cultivation very seriously. Erasmus Ashin, an official of Ghana exports Promotion Council, (GEPC) said that in medium and long term Ghana would be in a position to control atleast 10 per cent of the world export.

It is estimated that total cultivated area in Ghana will be 13,000 hectare within a few years and total pepper production will be around 22,000 tonne.Ghana which entered the production of black pepper 3-4 years back has now appeared as one of the most promising producers.

Ashin, zonal officer of Ashanti and Brong - Ahafo region said that Ghana may earn $45 million from pepper exports within a short period which will be more than a quarter of the total earnings from agricultural non-traditional exports.

Ecuador has an average annual production of 7,000 tonne and Europe is actively importing from that country. Ecuador entered the production of pepper four years back.

Vietnam is the role model of these emerging pepper producing nations, which at present controls 60 per cent of the total global exports. Starting during 1990s Vietnam is producing almost 100,000 tonne annually and offers the product at the lowest tariff in the world.

Sri Lanka has also surpassed India in the export with an average export of 12000 -15000 tonne annually. India's total exports in 2004-05 was 14,000 tonne and in April - August, 2005 this was 6,000 tonne according to the estimates of Spices Board.

According to an export trader of Kochi the main reason is productivity as the average per hectare production in Vietnam is 1,800 kg while in India it is just 400 kg. This advantage helps Vietnam control the exports by offering lower price tags which India can not afford.

Interestingly, all the major pepper producing countries had adopted plantation farming and taking the advantage of large scale production, while India is still adopting traditional style of small holdings.

But as the world changes, Indian farmers have also begun to switch over to plantation farming and Karnataka is taking the lead according to traders here. According to some projections total production in Karnataka would be around 60,000 tonne which equal to the present total production in the country.