A slowdown in the global demand and hope of a better crop in the coming season have eased pepper prices in the international market.
The current tight supply situation is expected to improve by December-end as fresh crop from India will hit the market within the next four to six weeks and no significant fall is expected in the global output for the coming season.
Reports of Vietnam shipping 20,000 tonnes of black pepper this year has also helped in easing the market further. Consequently, Vietnam and Indonesia have cut the price of ASTA grade variety marginally to $3,000-3,175 a tonne. India maintained the same level at $3,350 a tonne, but Brazil raised the tag to $3,000 a tonne from $2,900 previously.
According to Spices Board, the domestic crop size this year will be 53,000-55,000 tonnes, with Karnataka leading with a total production of 25,000-27,000 tonnes. Harvesting will be in full swing by the first week of January and the country is expected to maintain the same level of production as in 2009.
On the international front, Vietnam is reported to export around 25,000 tonnes more than their yearly target this calendar year. Their exports during the January-October period at 115,000 tonnes have already crossed the yearly target figure. A higher than average yield in 2009 helped the country to mop up the export market that spreads over 80 countries.
