MUMBAI (Commodity Online):Profit booking at higher levels brought some dips to the rising prices for Pepper. However, with demand rising at the lower levels and further rise in exports likely in coming weeks, these could provide some support to the price for Pepper.
There are expectations of some more corrections in the short term as higher production estimates are keeping pressure on the market sentiments. Medium term trend however looks positive on expected rise in export demand
As per IPC latest estimates, global Pepper production expected to rise to 3,20,000 tonnes in 2012 vs 2,98,000 tonnes this year a rise of 7.2%. Global exports expected to rise to 2.46 lakh tonnes vs 2.42 lakh tonnes in 2011.
The production in Vietnam, the largest producer, is expected at 1.10 lakh tonnes – a rise of 10,000 tonnes. New crop arrives in Feb.
Indonesian production expected to rise to 41000 tonnes up from 33000 tonnes. Malaysian production also expected higher at 26500 tonnes vs 25600 tonnes. Indian production expected to decline by 5000 tonnes at 43000 tonnes.
Reports of farmers shifting to other more profitable crops have affected the production aspects for the crop in India.
Latest reports from Spice Board of India indicates the likely Pepper exports for the period April-Sept 2011 have risen by 22% to 11250 MT in 2011 from 9250 MT in 2010 same period.
Source: Commodity Online