Black Pepper

Black Pepper is one of the most important spices grown and exported from India. Like other spices, it too has great domestic demand so quantity left for export is limited. Black pepper is mainly used as spice and its consumption is also known to have many health benefits. Though there are also white pepper and green pepper, black one is the most traded one, all being produced from the same fruit. Peppers are used in whole as well as grounded form all over the world.

In India, the harvesting period is Nov-March with South India growing almost all the black pepper production led by the state of Kerala which contibutes 97-98% of the total production. India, Vietnam, Brazil, Thailand, China, Madagascar, Sri Lanka, Indonesia, Malaysia are the major producers and exporters of pepper with Vietnam leading the both world production as well world exports chart. The harvesting season in Vietnam is March-May while in Indonesia it is July-Oct and Brazil August-Oct whereas in Malaysia it is May-Aug.

Black Pepper Related Links:
Black Pepper International / fob Prices & Futures - Pepper International origin priceso of Indonesia, Vietnam, Brazil and India. Indian pepper futures prices for the month of August, September, October, November and December
Black Pepper Prices & Futures - Pepper Indian market futures prices, pepper fob prices of Vietnam, India and Brazil origin July 2010.
Pepper Prices, World Consumption - Pepper futues prices, fob prices of India, Brazil, Vietnam, Indonesia, Pepper production of Indonesia, Brazil, India, World pepper consumption 2010
Black Pepper moved up on overseas demand - Overseas demand and limited supply pushed up pepper in Indian market. India's estimated pepper production, export and import.
Black Pepper futures & International Prices - Black Pepper Indian futures, Fob prices of Indian, Vietnamese & Brazilian Origin

India's main export is of Malabar grade black pepper. The country itself is a very big consumer of spices so the quantity available for export is limited as compared to its competitors.

U.S., Italy, Germany, Canada among other countries are big importers of Indian pepper due to its quality which is why it rules at the premium in International market. India also exports value added products like pepper oil, pepper oleoresins, green pepper in brine, dehydrated green pepper etc.

The prices of pepper are highly volatile like other spices as India itself is a very big consumer of it so if any production fluctuation occurs it affects it hard. Also the world production and demand plays the major role in pepper prices. The stockists and speculators also play a major role in its prices. The availablity of pepper futures have given the exporters an opportunity to hedge their risks.

Vietnamese Pepper Scenario

More than 30% of the world production of pepper come from Vietnam with in the year 2008 it was estimated 34.6%. Binh Phuoc, Dong Nai, Ba Ria - Vung Tau, Dak Nong, Gia Lai and Dak Lak are the main pepper producing regions of Vietnam. The total area under pepper cultivation is around 50,000 hectares with production in the region of 90000-100000 tonnes. The harvesting period is from the month of March to May. Vietnam is not only the biggest producer of pepper but also the largest exporter in world. Euorpean and Asian countries are the big buyers of Vietnamese produce besides U.S.

Indonesian Pepper Scenario

Lampung province of Sumatra is the major black pepper producing region in Indonesia while Bangka region produces white pepper. The harvesting season is from the month of July to October. The production is in the region of 22000-25000 tons contributing 9-10% of the world's production

Brazilian Pepper Scenario

Major production of the pepper in Brazil comes from the State of Para. The harvesting period for Brazilian pepper is August to October. Its estimated production in the year 2008 was 37000 tons contributing 14-15% of the global production. Brazil is one of the biggest exporter of pepper to U.S. market.

Malaysian Pepper Scenario

About 95% of the pepper is grown in the Sarawak region in Malaysia and thus in International market it is traded as Sarawak Pepper. About 14,000 hectares of land is under pepper cultivation in Sarawak, the major pepper growing area of Malaysia with an annual production in the region of 20,000 to 25,000 tonnes, contributing around 7-8% of the total world production. The harvesting season is from May to August with the months generally may and june being the peak of the season. It is not a big consumer like India so 90% of its production is exported to overseas market......more

Pepper Updates:
April 2010: Pepper Prices CNF U.S.

Indian Black Pepper MG 1 asta – $3,725 – $3,925
Indonesian pepper Lampong asta - $3,700
Vietnam asta – $3,575- $3,600;
Malaysian Origin Sarawak pepper asta - $3,750 - $ 3,775 c&f New York;
Vietnam white pepper double washed - $4,800- $4,825 c&f;
Muntok white pepper $5,500 c&f

May 2010: The production of black pepper in India this year is expected to be in the region of 40000 to 45000 tons by traders though the officially it is estimated to be 50-55000 tons. The arrivals in the mandis are limited to around 25 tons daily as farmers are holding onto their stocks for better prices. The non-acceptance of Vietnam quality by U.S. at present is putting hopes in the market that importers might turn to India for their purchases though the prices remain quite high.

The production of Vietnamese pepper for 2010 is estimated at 90000 tons almost 20-25% less than last year due to bad weather and diseases. Vietnam exported around 135000 tons last year but this year its export is expected to drop to 85000-90000 tons. The world production of pepper for 2010 is expected to drop while the demand would not decline. Vietnam is currently offering at US$ 3600, Indonesia at US$ 3650 and India at US$ 3800 per ton.

India is not only exporter but also a big importer of pepper, mainly from Vietnam, Brazil and Sri Lanka. The situation with regard to demand and supply is not very clear in Indian market leading to high speculation. Indonesian crop is expected to be lower by 30-35% while Brazilian pepper production might drop by 30-40% this year.