KOCHI: Prices saw a downward slide in the markets of two leading agri-commodities namely rubber and pepper. While it is larger imports that have affected prices in the case rubber, in pepper it is the fall in export demand that pulled down the price line.
With monsoon rains gaining strength rubber production was expected to fall which could have pushed up prices. However, rubber prices have eased in the major market due to the larger inflow of imports.
The imports of rubber stood at 51,000 tonnes on July 9, and that compared with 21,000 tonnes imported during the same period of last year. Exports, on the other hand, stood at just 1,000 tonnes compared to 15,000 tonnes. Lower exports and higher imports have pushed up the stock level to 1.9 lakh tonne by the end of June as compared to 1.4 lakh tonne during the same period last year.
The weak monsoon rain in the initial phase and the widespread adoption of rain-guarding of trees has led to more than expected production in the April-June period. Still the production in the first three months of the current financial year is 11% lower than the last year’s levels. Despite this, the higher imports have led to slight fall in prices to Rs 97 per kg on Friday from Rs 99-98 a couple of weeks back.
The rubber production in June is estimated to be at 54,500 tonnes as compared to 62,200 during the same period last year. Rubber Board sources said that the consumption is close to 72,000 tonne with the difference being met through imports and from stocks.
In the case of pepper, the prices have fallen from the level of Rs 128 per kg that ruled towards the end of June to Rs 125 per kg on Friday, July 10. Market sources pointed out that the prices saw a fall due to the poor exports demand.
The export price for black pepper was higher by almost $600 per tonne a few weeks back. Prices have now come to realistic levels of $2,600-2,650 per tonne. At this level, there is only a $200 difference per tonne between India and the other origins like Vietnam and Indonesia. Vietnam’s price is $2,400-2,450 per tonne, while Indonesia is offering at $2,350-2,400 per tonne.
Exporters point out that pepper prices cannot be kept at a high level for a long time without export demand.
Though the prices are slightly higher even now, it is considered as the premium that Indian pepper commands in the international market.
Indian production is estimated to be around 45,000 tonne last year. The exports in 2008-09 stood at 25,250 tonne which was lower than the year-ago period when traders exported about 35,000 tonne. The export turnover stood at Rs 413.74 crore as compared to Rs 519.50 crore in the previous year. During April-May, the total export of pepper stood at 3,000 tonne as compared to 5,580 tonne during the same period of the previous year.
Source : The Economic Times