PEPPER

Export pattern (pepper)

The pattern of global demand for black pepper has been undergoing changes. The consumer preference for value added form of pepper such as white pepper, pepper in brine, oleoresin is on the rise. India's export of pepper declined from 42806 MT in 1999-00, to 16635 MT in 2003-04. Export further declined to 14150 MT in 2004-05. The value realisation was also lower at Rs. 121.40 crores in 2004 -05 compared to Rs. 142.77 crores in 2003-04. The unit value realisation has been almost stagnant at Rs. 86 per kg during this period.

At a global level Vietnam is the leading exporter with 43% market share followed by Indonesia with 20%, Brazil 18% and India 6%. Vietnam exports around 91% of its production, while Indian export accounts for only 23% of its production.
Due to emergence of Vietnam as a major producer and exporter, Indian exports declined significantly during the current decade. Another factor was the poor competitiveness of Indian pepper. The Indian pepper was under-priced by other countries, especially Vietnam.
According to the data published by the International Pepper Community, 221695 MT of black pepper was traded during 2004 of which 44.43% was accounted by Vietnam, 19.66% by Indonesia, 18.28% by Brazil. India’s share was only 6.34%.
The following table shows that prices in competing countries were 20-30% lower than that of India.

Source: Pepper News & Market Review, January 2006, p.2-3.

Vietnam’s export earnings went up from $90.46 million in 2001 to $133.72 million in 2004. At the same time, India’s export earnings declined to one-sixth level between 1999 and 2004 from $198.16 to 33.78 million. Following Vietnam’s export pattern is highly diversified.

Source: Pepper News & Market Review (Various issues)