Due to high prices in the current financial year, India's pepper exports could reach the lowest in five years. Compared to Indian black pepper, Vietnam and Brazilian pepper are cheap, ultimately buyers are buying black pepper from these states.
When seen on the basis of year-on-year (Y-O-Y), black pepper exports decreased by 13% and in April-June 2017, it reached 3,900 tonnes. The export of black pepper in the financial year 2016-17 has been 17600 tonnes, which shows a decline of 37%.
Exports this year are expected to fall further in the export of black pepper and will reach around 15000 tonnes. About five years ago, this was the export figure. In fact, $ 4,000 and $ 3500 per tonne is worth Vietnam and Brazilian black pepper and $ 7,000 a ton, which is the price of Indian black pepper which is very high.
With an estimated production of 2 million tonnes this year, Vietnam becomes the largest producer of black pepper in the world. According to a report by the International Pepper community, from January to September 2017, Vietnam has exported 1.81 lakh tons. When seen on the basis of Wi-O-Y, through Sri Lanka, Vietnam pepper is entering the Indian market using 8% duty benefit for the SAARC countries and this local price of black pepper is Rs 420. Pushing per kilogram, which is about 40% shortage.
Due to low prices, black pepper of Indian exporters is accumulating. Along with imported chillies, value added chilli is also being exported. Monsoon has been normal this year and due to next year the production of black pepper will be normal. The price may be lower due to both carrier shares and new production this year next year.
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