Pepper imports into the nation is seen lower by 36% during the first six months of 2007-08, compared to the same period last fiscal.
Domestic availability of pepper is likely to be on the lower side considering the fact that exports from the nation has increased by the same rate during the period.
Until recently, the domestic prices were well below the offerings of other origins, which deterred imports. India imported 6,949 tonne of pepper as against 10,900 tonne in H1 of 2006-07, Spices Board sources said. Total imports for 2006-07 stood at 15,750 tonne.
The average cost of importing pepper has increased by almost 100% on the back of lower global availability of pepper. The unit cost of importing one kilogram of pepper during the current H1 stands at Rs 141 as against Rs 77 in the corresponding period of last fiscal.
Sri Lanka shipped the most to India with 3,100 tonne, while Vietnam stood second with 2,987 tonne.
Meanwhile pepper exports increased by 36.54% in volume terms during the same six months to touch 17,000 tonne as against 12,450 tonne, in the comparing period of last financial year.
With Indian prices moving up compared to other origins, traders expect imports to gather momentum in the coming days.
Many Indian processors have EoU units and lower physical availability of the commodity is likely to increase imports.