Vietnams Still To Join IPC, But Posts Highest Pepper Exports

Kochi, September 29: | Updated: Sep 30 2002, 05:30am hrs
Vietnam, which is yet to become a member of the International Pepper Community (IPC), is all set to beat India in pepper production to become the worlds largest pepper producer besides remaining the biggest exporter, according to IPC estimates.

IPC executive-director Mr KPG Menon said that as per the Councils projections, Vietnam was expected to produce 63,000 tonnes of pepper in 2003. This is 3,000 tonnes more than the estimated production for this year. However, in the case of India the fall in production is massive. From 80,000 tonnes this year, the Indian pepper production is expected to decline 62,000 tonnes in 2003. As a result, Vietnam is expected to be ahead of India by a margin of 1,000 more tonnes. The fall in Indian production is attributed to the drought this year.

Global Output May Dip 7% In 2003

Malaysia, Sept 29: Global pepper production could fall seven per cent next year due to bad weather, possibly bringing better prices, a senior industry official said.
World output is seen shrinking to 283,500 tonnes in 2003, from an estimated 305,462 tonnes this year, said KPG Menon, executive-director of the International Pepper Community (IPC), which groups both producers and consumers. Next years production will be down. Therefore, the bargaining power of growers might increase slightly, Menon said.
I am sure theres no chance for further declines in prices, he said at an IPC conference on
Borneo island. Reuters

Vietnam is expected to export 60,000 tonnes of pepper in 2003. In the case of India, domestic demand is heavy and thus exportable surplus is lesser. The efforts of IPC to boost domestic consumption by fixing a stipulated rate for export from pepper producing countries would not succeed as Vietnam is yet to join the IPC.

While Mr Menon had earlier said that Vietnam and China would join the IPC during this session, this had not taken place. As a result, there was no way IPC could enforce a minimum level of domestic consumption.

Vietnam continued to be the highest exporter followed by Brazil with 41,800 tonnes and Indonesia with 37,000 tonnes. India stays at the fourth spot with a mere 26,000 tonnes, despite its variety being treated the best. As far as global situation is concerned, the total production is projected at 2,83,500 tonnes in 2003. The production for 2002 is estimated to be 3,05,462 tonnes. As far as exports are concerned, while it is likely to be 2,03,000 tonnes this year, it may fall to 1,93,950 tonnes next year, according to IPC estimates.