Black pepper bullish on low Lankan imports

Sri Lankan black pepper has lost its charm in the Indian market after exporters increased its prices by $125. Only few sellers in Sri Lanka sell pepper at an increased price of $1,325 per tonne, said an exporter.

Most of them have shifted their attention to the Middle East and Pakistan due to price advantage, they added. Sri Lanka's export to India has been almost nil in the last one week. This has badly affected sales in the north Indian market.

This, coupled with reports of lower production next year, has made the local market slightly bullish. Black pepper price increased to $1500-1525 from $1450. Traders said the price increase may adversely affect exports.

Countries like Canada, Poland and Australia have shown some interest in the Indian product. Currently, around 750 tonne is being exported in a week.

Indonesia, at present, is also active in the global market. It is offering pepper at a price tag of $1350 till December 2005. It is reported that they had a total production of 21,000 tonne.

Vietnam's rates are on par with Indonesia while Brazil is offering pepper at $1500 but is hardly aggressive in the global market.

According to preliminary estimates, production in the next season will be short by 10-15 per cent locally. Some growers said the loss in production would be more in southern districts of Kerala.

These reports have also resulted in an increase the spot prices to Rs 6,150 a quintal (garbled) Rs 5,750 (un-garbled) in Kochi.