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Pepper
loses sheen, prices hit rock bottom
Ajayan
in Kochi
It was not all that spicy or flavourable for the spices
sector during the year 2001. But for cardamom, all commodities
in the spice basket has had to face tough times. Exports have
taken a southward slide as also the price. It was only cardamom
that continued to fetch the grower a ‘decent’ price.
Pepper which has a pride of place in the basket has seen the
worst of times. In the wake of high price-competition, prices
have declined to such abysmal levels that it is feared it may
go below Rs 50 a kg. At the beginning of January 2000, the price
of spot pepper in the Kochi market was Rs 227 a kg, while it
was Rs 129 in the beginning of 2001. In November 2000 the price
of pepper was 135 and this Decmeber it came down to Rs 70. The
average price during last year was Rs 174.24 compared to Rs
80.77 till November, 2001.
Said Indian Pepper and Spice Trade Association (IPSTA) chairman
Kishor Shamji: The year has generally been bad and as things
are, the future is not going to be different for the time being.
When prices had gone up most of the growers held back their
stock expecting a higher price. And finally when the prices
started settling at a lower level, the grower was left with
a burgeoning stock.” “There was the futures system in place
and had growers made use of the indications of this price mechanism
system, they would not have had to face such difficult times,
he felt. Incidentally Kochi boasts the first ever futures market
for pepper in the country.
In the international market, Indian pepper was outpriced at
nearly $1,550. The serious threat was now from Vietnam which
would be entering the market sometime in February with its stock
estimated to be 45,000 tonne. Market sources said that Indonesia
was underselling pepper by nearly $150. Given the present trend,
India has just a few more weeks before the crop form other markets
come in. It was important that taking a cue from cardamom, domestic
consumption of pepper was increased, he said.
Pepper harvest has just begun and this season is expected to
have a bumper crop. According to International Pepper Community
(IPC) estimates, pepper production in the country is expected
to be 79,000 tonne this year. Both domestic consumption and
exports were expected to be higher by 2,000 tonne. According
to figures available with the Spice Board, just 14,050 tonne
of pepper was 14,050 tonne of pepper has been exported compared
to the revised target of 24,000 tonne. Spices Board sources
as well as traders say that there is remote possibility of India
achieving the target. “In December hardly 1,000 tonne was shipped,”
said Mr Shamji.
Cardamom which has a price sustained by the domestic market
continued to have a good year with the new season starting in
August and going up to April-May. There was little threat of
cheap Guatemalan variety making an invasion. Though production
is expected to be short by over 15 per cent, it is expected
to be in the 10,000-11,000 tonnes range. Only 500-600 tonnes
is exported. Like last year, this season too has seen an average
price of Rs 550-600 per kg. The strong domestic demand for cardamom
is something that the pepper sector should emulate, said Spices
Board officials. Value-addition was what the spices sector should
concentrate on, said Board officials. Export of oleoresins,
mint oil and other value-added products have gone up both in
quantity and value terms. |
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