Black pepper prices rise on short supplies.

KOCHI: Black pepper prices are on a rising trend on account of short supplies both in the domestic and international market. With output likely to see a dip in the major producing countries the prices are likely to rule high in the immediate future.

Pepper prices have climbed to a level of Rs 142 per kg in the spot market on Friday, which represents a 12.7 % fall from Rs 126 per kg on July 1.

In the international market the Indian offer price has gone up to US $ 3100 per tonne. Interestingly, the Vietnam price has also increased to this level. Vietnam is understood to have sold close to 80,000 of pepper this year. The quantity available for exports for the remaining year is around 25,000 tonnes, according to industry sources.

In Brazil, the production is expected to see a 29% fall in the current year. The indications are that the Brazil’s crop would be delayed and is likely to be in the range of 32,000 tonnes for the current crop. Damage to new crop has been reported due to heavy rainfall.

Indonesia’s offer price has also gone up in the recent weeks to US $ 2900 per tonne. The price rise is on account of a reported fall in production in Indonesia. Industry sources said that part of the production would meet export commitments that the country has entered into. Early estimates of the Indian pepper production expected by trade and industry is that the new crop, expected in coming December-January is likely to be the same as last year’s level of 45,000 tonnes

The increase in international pepper prices of the leading producing countries has increased the export competitiveness of Indian exporters. “We have a competitive edge when prices are equal in the international market”, an exporter said. According to him, the superior quality of the Indian pepper would be preferred in the international market.

Interestingly, exporters point out that so far there has not been any major export demand from the main importing countries. Bulk of the pepper shipped by Vietnam and other origins has been to Asian markets.