Black pepper exports, a major contributor to the Indian spices export kitty, have suffered a serious setback in the first quarter of the current financial year. The exports registered a drop of 46 per cent at 4,084 tonnes during April-June against 7,550 tonnes in the same period last year.
The sharp decline in exports was due to the current price tags in India, which are the highest across all leading global markets.
For the last 12-15 months, Indian prices were higher by $200-$300 a tonne on an average than the prices in Vietnam, Indonesia and Brazil. The current trend in exports indicates that India will not be in a position to meet the target set by the Spices Board.
The board had set a target of 25,000 tonnes for 2009-10 against 35,000 tonnes set for 2008-09. This decreasing trend is a spillover from the last financial year. During 2008-09, total exports declined to 25,250 tonnes from 35,000 tonnes in the previous financial year, registering a fall of 28 per cent.
Meanwhile, import of pepper in Q1 has increased sharply to 5,451 tonnes against 3,971 tonnes during the same period of 2008-09. The star attraction for importers was the much lower price tags offered by Vietnam and Indonesia. In June itself, 2,282 tonnes were imported to India.
Meanwhile, exporters and traders here await a short stint of price rise before the commencement of harvesting in India. This is likely to happen by the middle of next month as local demand is likely to spurt on account of the winter season.
Few exporters feel that there might be an increase in global demand for the spice as leading traders in EU have to opt for short covering against their sales in the US and EU. This may enthuse markets especially in Indonesia and Vietnam, where prices are at much lower levels. But the spurt in demand will not help India because of its much higher price tags.
Source : Business Standard