Pepper Exports Not Picking Up On Poor Demand

Kochi: Overseas demand for black pepper is still down despite the domestic prices quoting the lowest across the world. Local exporters are disappointed by a poor response from the US and the European markets, even as they are ready to ship MG1 grade at $3,850 a tonne for May and June. According to leading exporters, Europe and the US are fully covered for the next couple of months, and importers are waiting for prices to come down further. Another section of the exporters believed that the major importing nations are adopting a strategy of wait-and-watch, as aggressive buying may bring in sharp increase in prices. Most of the countries are having a good stock of pepper, and hence there is no urgency to buy. But India is losing an obvious chance as there is every possibility that Vietnam may reduce the tags sharply since they have to clear the stocks soon. Although Vietnam slashed the prices by $100, their quotations are still the highest in the world at $4,235 for ASTA, $3,870 for 550 GL and $3,650 for 500 GL. Export demand is rather very weak in Vietnam because of higher prices, but exporters there are reluctant to reduce the tags considerably for the time being. Indonesia is active on the export front and is offering pepper at $3,975 till September. Indian exporters are not even quoting prices for June delivery because of high order of volatility in futures trading. Importing nations, especially Europe and the US are expecting further lower prices during July-September. Brazil, where the prices are relatively low ($3,700 for B1 and $3,900 for BASTA), is not aggressive in the export market because of lower stock position.