During January-May this year, global pepper exports slid by nearly 40 per cent to 10,878 tonnes against 17,655 tonnes during the same period last year, a spices board report said.

Exports were lowest since 1995, when 12,817 tonnes of pepper were shipped in the first five months.

Lack of containers, increase in freight rates and financial problems, all added to the woes of pepper exporters during the period, the report said.

Increased demand from United States and Russia coupled with lower production in Indonesia, Malayasia and Brazil have led to sharp rise in pepper prices.

Though exports picked up in May, it was still lower than shipments in May 1997. During May 3,024 tonnes were exported as against 4,951 tonnes in the same period last year.

India accounted for 1,444 tonnes of this followed by Brazil which exported 1,225 tonnes. Just over 100 tonnes was shipped from Indonesia, while exports from Malayasia was nil.

As per spices board report, pepper prices during first quarter of the current financial year were a record high at Rs 21,015 a quintal.

The prices were 20 per cent higher than the Rs 17,343 a quintal during the same period last year. Compared to the prices of Rs 8,375 a quintal during first quarter of 1996-97, the prices have shot up by over 150 per cent.

As a result of the sharp rise in prices, pepper exports during first quarter from India dipped to 10,000 tonnes from 14,382 tonnes last year, it said.

Pepper exports value were, however, up at Rs 192.70 crore against Rs 151.67 crore last year.

The spices board said estimates of a lower crop in Indonesia had boosted the prices in Kochi, India's primary market for pepper, the report said.

Economic uncertainties in south-east Asian region had also cast a gloom on forward sales.

Importers were being forced to pay higher prices as ready goods were being held tightly by exporters and growers. On the other hand, stocks were also low leading to a tight situation.

Under such a situation, technical correction in pepper prices was ruled out for now, it added.