Pepper demand down 30%

FINANCIAL CRISIS HITS US IMPORTS

Indicating a slowdown in demand for black pepper from the US, the country’s import of pepper has dropped by 30 per cent to 3,504 tonnes in August, compared with 5,062 tonnes in the same month last year.

For the eight-month period beginning January 2008, total imports dropped to 31,819 tonnes, down by 6.5 per cent from 34,091 tonnes during the January-August period last year.

India’s contribution in the US import basket dropped by 43 per cent to 685 tonnes during August, from 1,200 tonnes in the same month last year. Indonesia topped the table with 1,640 tonnes, followed by Vietnam with 850 tonnes.

Vietnam has increased its exports to the US from 225 tonnes in August 2007 to 850 tonne. Brazil had a severe setback as its shipment dropped from 1,170 tonnes to 225 tonnes.

According to leading exporters, the fall in US imports was due to the ongoing economic crisis.

Spices export sector too may have serious repercussions as the slowdown aggravates further and becomes an economic depression.

India has become one of the cheapest destination for importers due to an appreciation in US$. The Indian price tag for MG1 has dropped to $2,950-$3,000 per tonne (FOB-Kochi), second only to Brazil that quotes $2,750-2,850.

The Indian exporters have already contracted to export 700-800 tonnes for the current month, thanks to the price advantage.