Pricey pepper loses popularity abroad

Though demand for Indian black pepper has weakened in the global markets, however, local pepper continues to be costlier by at least $50 than pepper from other countries.

Currently, spot price for garbled black pepper is Rs 6,200 a quintal, Rs 100 down from last week and that of un-garbled pepper is Rs 5,800.

Traders said Sri Lankan pepper, which is being offered at $1,260 a tonne for delivery in ports like Mumbai and Kochi, was the greatest threat for Indian traders as the Indian pepper was still hovering around $1500.

At present, the monthly average export from India was to the tune of 500"�700 tonne and ity was mainly to countries like Canada, who prefer MG-1 grade.

Though Vietnam is the largest exporter in the world market, they were not aggressive at present due shortage of supply, they said.

According to estimates, Vietnam has exported 50,000 tonne of pepper so far and still had a stock of around 30,000"�35,000 tonne.

The next production season in Vietnam will commence in January 2006 and local traders claim that they will not be aggressive till then.

Price of ASTA grade is $1,350 in Vietnam and that of 500 gm/litre is $1150. Brazil and Indonesia offer higher prices than Vietnam at $1,425"�$1,450 and $1,400"�$1,425 respectively.

Traders said that the local market was also very weak as the north Indian buyers were very active in the upcountry markets of Karnataka, especially in Coorg.

Indian market was hitching all hopes on the export incentive scheme expected to be announced soon.

Meanwhile, export of pepper had decreased during last fiscal as per the statistics of Spices Board.

In 2004-05 total export was 14,150 tonne valued at Rs 121.40 crore.

Total export in 2003"�04 was 16,635 tonne valued at Rs 142.77 crore. But the export of oleoresin, oil and powder had increased by 11 per cent in quantity and 4 per cent in value.