Pepper production in 1999 is expected to increase to about21,500 tonnes from 19,000 last year while exports may hit 20,000 tonnes against 17,800 a year ago, the board's general manager Anandan Abdullah said.

He told Reuters in an interview that Malaysia's pepper export earnings could exceed the 360 million ringgit achieved last year, aided by better world prices.

"Prices went down in the middle of the year but have rebounded strongly. Overall, prices have been good this year and the total export value should be higher," Anandan said.

Prices for Malaysian black pepper now stand at 19,000 ringgit a tonne and white pepper at 24,000 ringgit a tonne, compared with 14,000 and 22,000 ringgit respectively at the beginning of 1999. Anandan said strong demand, coupled with tight supply, has buoyed prices.

"It's very much a sellers' market.Demand is consistent but there has been a shortfall in supply," he said, adding that farmers were also holding some stocks.