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World pepper prices may rise next year on reduction in production and carry-over stocks
2010/10/05


Jakarta/05th October 2010
World pepper availability for the year 2011 would be less than in 2010.
Besides the considerable reduction in iron stocks in Indonesia and India and likely to lead to life time high prices, according to the figures being compiled prior to the International Pepper Community (IPC), the inter-government organisation of countries which grow the commodity getting ready for the most spectacular pepper confernce of all times in Cochin the commercial capital of Gods own country from Nov 8th 2010.

IPC’s members are Brazil, India, Indonesia, Malaysia, Sri Lanka and Vietnam, while Papua New Guinea and Hainan (China) are associates.
The secretariat is at Jakarta, Indonesia headed by S. Kannan as the Secretary General who was the former Director marketing of Spices Board India.
It has estimated world production at 325,000 tonnes in 2010, a 2 per cent decrease from 2009.
This marginal decrease was due to a reduction in production in Vietnam; where as output in Indonesia was substantially up. Malaysia was marginally up, while Brazil, Sri Lanka and China reported drops. India and other small producers showed no change in 2010.

Black pepper output stood at 260,000 tonnes in 2010 from 271,000 tonnes in 2010.
Vietnam’s black pepper output decreased from 120,000 tonnes to 110,000 tonnes in 2010. Malaysia’s was up by 2000 tonnes. The other four, mentioned earlier, showed a combined drop of 10,000 tonnes. India produced 50,000 tonnes of black pepper.

White pepper output fell from 67,200 tonnes in 2009 to 60,000, tonnes in 2010.
Indonesia reported the maximum fall, from 13,000 tonnes in 2010 to 9,000 tonnes in 2010 .
Production in Brazil also decreased by 2,000 tonnes, while that in Malaysia it was stable. Vietnam production dropped from 18,000 tonnes in 2009 to 15,000 tonnes in 2010.

Export from leading producing countries for black pepper in the first 9 months was: Vietnam 100,000 Indonesia 23,500 mt, Brazil 20,000, Malayasia 15,000, India 10,000 mt and Srilanka 8000 mt.

A significant feature in 2010 was all the producing countries such as India, China, Indonesia , Malaysia and Vietnam also imported significant quantities in 2010 either for domestic consumption or value additions, like pepper oils, oleoresins and ground pepper, and re-exports when they found their local prices were much higher than other producing countries.
During the first 9 months Vietnam imported 12,000 mt pepper from India and Indonesia; India imported 10,000 mt from Indonesia and Vietnam.
 Indonesia imported 2,000 tons from Vietanm, mostly white pepper, and Malayasia imported 1,500 tons comprising both black and white pepper and one should see origin preferences giving way to specifications in the international market

According to Indias major exporters, they see a good chance to export 5-6,000 mt of black peppr during November/December/January/ February this year, with the almost nil competition from Vietnam for ASTA grade pepper and Indonesia cant fufill the world requirements for the next fivemonths before new crop in Vietnam, and Brazil harvest this year turning to be a disaster.

Commentary by Sham Nair



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