Higher prices push India out of global pepper mart

The country has been literally pushed out of the global pepper market by the three major producing nations, Vietnam, Indonesia and Brazil, who have significantly lowered the the prices of the commodity.

The country's pepper prices are ruling at $3,450 a tonne (fob Kochi) against Vietnam's $3,400 (fob HCMC), Indonesia's $3,150 (fob Panjang) and Brazil's $3,050 (fob Belem).

Exporters here felt that fresh crop from Vietnam would arrive earlier than expected, and hence, the country was keen on clearing the old stocks. The higher prices in India are mainly attributed to high volatility in the futures market.

This week the market is looking week because of heavy selling pressure. Besides, sluggish demand from the US and European Union (EU), the two major importers of pepper, ahead of Christmas and New Year, has further weakened the market.

Meanwhile, the global pepper stock is estimated at around 70,000 tonne as on December 1, 2007, and is projected to drop by 20,000-25,000 tonnes by the February-end. The drop is 30 per cent higher than the last two years. The global stock was more than 90,000 tonnes in 2006, and 100,000 tonnes in 2005.

The global pepper output in 2007 is estimated at 280,000 tonnes, while consumption is expected to be 340,000 tonnes.