Tuesday, April 16, 2013

Pepper exports dive on production woes

http://www.thehindubusinessline.com/industry-and-economy/agri-biz/pepper-exports-dive-on-production-woes/article4620520.ece

Indian pepper has lost its glory in the world market as the major supplier of the spice following continued decline in production due to various factors. Vietnam has taken over the top slot in the world production and supply for about a decade now.

Output, yield

Pepper production, which was at 64,000 tonnes from 2.16 lakh hectare in 2003 with an yield of 296.3 kg/hectare, has declined to 48,000 tonnes in 2011 from 1.84 lakh hectares and to 43,000 tonnes in 2012. In 1993, the country produced 50,760 tonnes from an area of 1,89,370 hectares with a productivity of 268 kg/hectare.

Dwindling exports

Fall in Indian exports of pepper could be attributed to the strong domestic demand estimated at somewhere between 40,000 and 45,000 tonnes a year and the resultant comparatively high domestic prices making the commodity often non-competitive in the world market, Kishor Shamji, a pioneer in the trade and former President, IPSTA, told Business Line.

Vietnam gains

Vietnam, which produced only 9,750 tonnes of pepper from 6,700 hectares in 1993, raised its area to 30,600 hectares and produced 89,180 tonnes with an yield of 2,914 kg/hectare in a decade in 2003. From there, it increased its production to 1,09,400 tonnes in 2011 from 45,100 hectares with a productivity of 2,425 kg/hectare.
In 2012, according to International Pepper Community (IPC) statistics, India was pushed down to third place in production.

Kerala's scenario

The continuous fall in area and production in Kerala, which used to be the leader in pepper production in the country, is attributed to the drop in national pepper production.
According to the latest Economic Review of the State Government, “in Kerala, the area under pepper is estimated at 0.85 lakh hectares and production at 0.38 lakh tonnes during 2011-12. It is noted that the production has declined by 16.1 per cent in the respective period caused by erratic weather condition in growing regions and also on account of structural issues. Insect pest problem of erythrina(standard),weather viability, absence of alternate standards, poor productivity, fluctuating prices, etc. compounded the declining production”.

Global situation

The IPC has projected world pepper production for 2013 at 3,14,832 tonnes against 3,24,090 tonnes in 2012 and 3,17,750 tonnes in 2011.
According to this projection, India's position is at second slot in 2013. However, it would depend on the actual production in Indonesia.
Vietnam continues to hold the first position with 33.5 per cent share of world pepper production and where India contribute 16.1 per cent share with 2nd/3rd rank.

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