India turns largest importer of Vietnam pepper

India has emerged the largest importer of pepper from Vietnam in March 2006? With 1,902 tonne, the country topped the table of pepper imports from Vietnam last month.

According to Vietnam Pepper Association estimates, the country exported 18,996 tonne pepper "" including 2,168 tonne white pepper "" during March 1-April 9, 2006. It exported 2,168 tonne white pepper in March alone, of which India imported 87 tonne.

More than 60 per cent of the world's total exports of pepper during March were from Vietnam as most of the producing nations including India have been virtually out of the global pepper exports arena due to acute price disadvantage compared with Vietnam.

According to traders in the city, the Indian imports surged ahead owing to strong demand from export-oriented units and industrial users. There is around $360 a tonne difference between India's and Vietnam's prices for ASTA grade.

This is the major advantage in importing the stuff for re-export of value-added products like oleoresin and oil.

The Middle-East nations imported 1,736 tonne pepper from Vietnam followed by Pakistan having imported 1,611 tonne.

Next in the chart was the Netherlands with imports of 1,534 tonne, followed by Germany with 1,250 tonne and the US with 1,076 tonne.

Vietnam has been ruling the roost in the global pepper market on its huge price advantage "" at levels no other country can offer.

However, the country is quoting slightly higher prices at $1,240 per tonne for 550 gm/litre than a couple of weeks ago at $1,180 per tonne for 500 gm/liter.

Quotations for ASTA remained unchanged at the level of $1,340 while India is quoting at $1,700 for the same stuff. The current price tags of Indonesia are at $1,600-1,650 for C&F New York and Brazil is quoting $1,500-1,550 though these countries are not so active on the supply front.

It is also noted that though currently India and Vietnam are major producing nations India is nowhere in the global market while Vietnam has emerged a major destination for black pepper.

A city exporter said, given the present trend in the global export market, Vietnam would have a shortage of pepper in the next six-seven months as its entire exportable stuff would be sold out.

Total production in Vietnam is expected to be around 90,000 tonne, which is lower by 15,000-20,000 tonne than last year.

According to city traders' estimates, total exportable quantity of Vietnam would be 1,00,000 tonne including carryover stock. Of the total annual global market size of 2,00,000 tonne, on an average 50 per cent would be supplied by Vietnam "" and that too in less than 15 years "" proving the country's strong presence in the market.