India imported almost the same quantity of black pepper as it exported during the March-May period, according to the latest trade estimates. Total imports during the period were 4,500 tonnes while exports were 4,600 tonnes. A majority of these imports were from Vietnam where the price advantage is at its best in the country at present. India offers Asta grade pepper at $6,800 a tonne, while it is $400 a tonne less in Vietnam.
This is why a good volume of pepper is pouring into India despite good domestic supply from Karnataka. According to Kochi-based traders, the imported stuff is slowly flooding local markets.
Pepper futures are currently under a small number of operators, which made the country unattractive for leading importers from the US and Europe. Indonesia offers $6,500 a tonne for Asta variety and the indicative price in Brazil is $6,000-6,200 a tonne. In the last couple of years, India became a net importer of black pepper as the per-tonne cost is the highest in India.
Traders opined that imported pepper is freely available in Chennai, Bangalore, Delhi and Mumbai. Import is likely to pick up as Vietnam is likely to have a stock of 40,000-50,000 tonnes for exports, according to estimates. The production there is crucial to the global pepper market.
By next month, Indonesia will be active in the market, followed by Brazil. So far, Vietnam has shipped 68,000 tonnes and the remaining stock, coupled with the production in Indonesia will be crucial for the market in the coming months.
