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This year India’s pepper export decreases due to high price

Due to higher prices in the present fiscal, the pepper exports of India may reach the lowest in five years. In comparison with Indian pepper, the pepper of Vietnam and Brazil is cheaper so, ultimately the buyers are buying pepper from these states.

When seen on year-on-year(Y-O-Y) basis, the exports of pepper have fallen by 13% and in April-June 2017, reached to 3,900 tonnes. The pepper exports had become 17600 tonnes in FY2016-17, which shows a fall of 37%.

This year, exporters expecting further fall in pepper exports and will reach about 15000 tonnes. About five years back, it was the export figure. Respectively $4000 and $3500 per tonne is the pepper price of Vietnam and Brazil and $7000 per tonne is the price of Indian pepper which is much higher.

This year, with an estimated output of 2 lakh tonnes Vietnam becomes the largest producer of pepper in the world. From January-September 2017, Vietnam has shipped 1.81 lakh tonnes, as per the report made by the International Pepper Community. When seen on a Y-O-Y basis, through Srilanka, the Vietnamese pepper is entering Indian market using the 8% duty advantage for SAARC countries and it is pushing the local prices of pepper down to Rs.420 per kg which is about 40% reduction.

Due to lower prices, the Indian exporters are hoarding the pepper. With imported pepper, value-added pepper exports are also happening. This year the monsoon has been normal and due to this next year also pepper production will be normal. Next year the price may reduce due to both carryover stocks from this year and the new production.