Brazil, Indonesia overtake India in pepper exports

Both the countries take advantage of higher prices in India.

In what could be a major shift in the global pepper market, Brazil and Indonesia have overtaken India as the major exporters of the spice.

RACING AHEAD

Brazil and Vietnam are offering ASTA grade pepper at rates that are lower by $250"�450 per tonne than India

Importers from the US have placed orders for B-ASTA at $3,600"�3,700 a tonne and bought pepper from Indonesia at $3,800"�3,825

Importers from the EU and the US had shown interest in the Indian market at the $3,650-3,750 level

However, there were no overseas buyers for pepper at $3,850 last week

Both these countries are currently offering ASTA grade pepper at rates that are lower by $250"�450 per tonne than India, attracting buyers from the United States and European Union.

Importers from the US have placed orders for B-ASTA at $3,600"�3,700 a tonne and bought pepper from Indonesia at $3,800"�3,825, though in low volumes.

India, meanwhile, has hiked the tag of MG1 to $4,000"�4,050 in line with Vietnam, anticipating a supply crunch. The move has kept overseas buyers away from the domestic market, even though the price stood at $3,850 last week.

Importers from the EU and the US had shown interest in the Indian market at the $3,650-3,750 level. However, there were no overseas buyers for pepper at $3,850 last week.

Although more than 40 per cent of the harvest is over in Vietnam, farmers anticipating higher prices, are not willing to sell. This has enabled the export surge from other producing countries such as Brazil and Indonesia in the global market.

Brazil, which accounts for the major chunk of exports, sold B-ASTA at $3,600-3,700 (fob Belem) this week, while Indonesia quoted $3,850-3,900 (fob Panjang). But the US, the largest consumer, is still waiting on the sidelines expecting a further price fall.

The latest quotes from Vietnam is $3,850 (fob HCMC) for 500 g/l and $4,000 (fob HCMC) for 550 g/l. For white pepper and ASTA grade no quotes are currently available.

Meanwhile, Indian and other multinational processors are shipping MG1 to plants in Vietnam from other origins because of the current high prices in that country.