Re rise has pepper exporters worried

KOCHI: Exporters looking to encash a decline in domestic pepper prices in the past 2-3 weeks are in for disappointment due to the strengthening of the rupee. The rupee’s appreciation against the dollar has taken away the competitive edge, said spokesmen of exporters.

Black pepper exports have slowed down to less than 1,000 tonne per month by August. During the April-August period, the exports stood at 7,600 tonne against 8,000 tonne during the same period last year. With Indonesia selling at a much lower rate, the international demand has largely bypassed India. Exporters pointed out that Brazil too is ready with its crop of 25,000-28,000 tonne at an even lower price. “We are now looking forward to the demand during the November-January period,” said one exporter.

Traders say weak demand has contributed to the low prices. “Rains and floods has affected the domestic demand,” said Mr Kishor Shamji of Kishor Spices. He said truck movement has slowed down following the floods. The domestic prices that hovered around Rs 205 per kg on September 13 fell to Rs 192 by September 30. The futures prices saw a similar fall with the October contract moving down from Rs 203.01 per kg on September 14 to Rs 188.81 per kg on September 30.