Import of black pepper has risen to a new high in recent months, strongly signaling that India may become a net importer of the spice in the current financial year. In May, a total of 2,265 tonnes of pepper has been imported through Kochi port against an all-India export of 1,745 tonnes. According to leading Kochi-based exporters, the import spree would continue in the coming months as major part of the import has been booked for May, June and July. Vietnam, Indonesia and Sri Lanka are currently the leading suppliers of the spice to India.
Exporters and traders has cited two main reasons for the steep rise in imports. The most important factor is the price advantage that Vietnam and Indonesia have over India. The local price of pepper is quoted at $2,700-$2,750 a tonne which is higher by $300-$350 a tonne than Vietnam and Indonesia. This attracts re-exporters and valued added processors to import in good quantities. Pepper import is also active through Mumbai and Chennai ports.
A much higher oil content in the imported stuff, especially that of Sri Lanka, also attracts oleoresin manufacturers. Though Sri Lanka is offering higher price tags, oil content in Lankan pepper is 15-16 per cent, while the Indian pepper contains 7-8 per cent oil. According to them, import will increase in coming 2-3 months, since Indian prices would be pegged higher than Vietnam, Indonesia and Brazil. Total import in 2008-09 were 10,750 tonnes valued at Rs 176.65 crore against an export of 25,250 tonnes valued at Rs 413.74 crore.
Meanwhile, bullish sentiments are likely to continue in the global mart as the supply will be stronger only by September when harvesting begins in Brazil and Indonesia.
Source : Business Standard