MALAYSIA : Lower pepper production expected this year

 

KUCHING Monday, 28 Sep 2020

Malaysia’s pepper production is expected to drop by between 10% and 20% this year due mainly to poor farm maintenance.

Malaysian Pepper Board (MPB) director-general Stanley Liew anticipates the country’s 2020 production volume to fall to about 30,000 tonnes from between the 34,000 and 35,000 tonnes a year recorded previously.

“The lower production volume is because of poor farm maintenance.
“If you do not fertilise your pepper vines, this will affect productivity (yield) and the berries will not be good, ” he told StarBiz.

Pepper farmers in Sarawak, who contribute more than 95% of Malaysia’s production output, are currently into the tail-end of harvesting their new crop.
Also producing pepper are Johor and Sabah.

The harvesting activities, according to Liew, has been delayed this year due to the enforcement of the movement control order (MCO) to contain the spread of the Covid-19 pandemic in Malaysia.

Smallholders are reported to have reduced fertiliser input for their pepper gardens due to the prolonged depressed global pepper prices.

Kuching Grade 1 white pepper plunged to a recent low of about RM13,500 per tonne from a historical high of RM50,000 per tonne in 2016, while Grade 1 black pepper was down to RM7,500 per tonne from an all-time high of RM30,000 per tonne.

However, the prices have since recovered to RM14,700 per tonne for white pepper and RM8,250 per tonne for black pepper due to increasing demand.

The MPB, according to Liew, is paying about RM10 per kg (RM1,000 per tonne) ex-farm to purchase special grade black pepper from the planters.

Liew attributed the rebound in domestic prices to a recovery in the global market due to increased buying activities post-MCO.

To help smallholder pepper farmers, the government has approved RM16.11mil under its stimulus package for farm maintenance support.

The aid is disbursed via vouchers to farmers to buy fertiliser and farm tools.

Liew said the MPB is in the midst of distributing the vouchers nationwide to eligible farmers who together own about 5,370ha of pepper gardens.

To boost new planting, he said, MPB provides subsidies of RM26,000 per ha for two years to help smallholders to expand their farms.

Last year, the subsidy was for the establishment of 350ha of new planting, and for 2020, it is for 115ha.

“We encourage investors to venture into large-scale pepper planting.

“There are now two potential investors, including one from Japan, who are in several rounds of serious discussions on commercial planting with the pepper board, ” said Liew.

He said the MPB is currently drafting licensing and enforcement regulations to regulate, among others, the import and export of pepper to check abuse by unscrupulous businessmen.

“We will be guided by the Federal Attorney General Chamber in the draft of the licensing and enforcement regulations which only require the approval of the Plantation Industries and Commodities Minister as stipulated in the Malaysian Pepper Board Act 656. We are proposing penalties for the offenders, ” he added.

With gazetting expected early next year, the new regulations make it compulsory for companies to obtain a licence and report the import or export volumes of pepper and related matters to the MPB.

Sarawak Deputy Chief Minister and Minister of Modernisation of Agriculture, Native Land and Regional Development Datuk Amar Douglos Uggah Embas claimed last week that there were some unscrupulous traders who have of late been importing pepper from Vietnam and Indonesia and mixing them with the Sarawak Pepper brand and selling them as premium pepper for higher profits.

Uggah asked the MPB to be stringent to check such malpractices to ensure Sarawak Pepper remains a premium product.

Sarawak Pepper is known for its high quality globally and commands a premium price. There are a dozen pepper exporters in Sarawak.

Liew said there were more than 40 pepper agropreneurs in Sarawak who were involved in downstream activities, such as producing pepper powder, pepper packets as well as pepper soap and hand sanitisers.

Some of these value-added products are for the export market.

by JACK WONG
For https://www.thestar.com.my

 

   



 

INDIA:Subdued buying dampens festive spirit in cardamom trade

 



Kochi September 22, 2020

Restrictions on weddings and public events, dwindling demand in the north Indian markets, stagnant export markets hit traders

Despite the ensuing festival season, subdued buying of cardamom from upcountry markets has pushed the trading community in a precarious situation.
“What is happening now is only minimal trade with some specific orders which is not enough to tide over the crisis triggered by the pandemic,” sources in the sector told BusinessLine. The high labour cost and shortage of migrant labour from Theni due to Covid-19 restrictions has forced growers in Idukki to depend on labour that’s available in Kerala, which has increased costs by around 30 per cent, the sources said.

“September and October are considered a good time for a demand boost for cardamom from North Indian consuming markets. But the spread of Covid-19 has hit consumption due to restrictions on weddings, events, etc. Traders are in a dilemma on the dwindling demand, coupled with a stagnant export market due to the pesticide issue in Saudi Arabia,” PC Punnoose, CEO, CPMCS Ltd, said.
The labour shortage is affecting the harvest in Idukki, where 90 per cent of the country’s cardamom is grown. The delay is impacting the quality of capsules which now looks pale yellow in colour instead of flush green. Moreover, movement restrictions on labour affected the upkeep of plantations, as 40 per cent of cardamom plantations in Idukki are owned by farmers from the neighbouring state, he said.

As cardamom plantations are labour intensive, C Sadasivasubramaniam, Secretary, Kerala Cardamom Growers Association, urged the district administration to permit workers to travel from the borders to Idukki. The major threat to plants is the Azhukal disease that requires anti-fungal treatment. “When Kerala government permits free movement of workers through other district borders, why is the district administration in Idukki so adamant in denying such benefits here?” he asked.
“Cardamom capsules has to be plucked at 40-day intervals and any delay can lead to quality reduction, breaking of capsules and less setting for future rounds,” SB Prabhakar, cardamom planter, Pambadampara Estate, said.

The reduced demand in north Indian markets is contributing to a fall in prices; it dropped to ₹1,460 per kg, half of the previous year’s average. Copious amounts of rains in September in growing areas added to the bearish sentiment, he added.

Guatemala is expecting a good crop this season due to ideal weather and the prices are hovering at around $17. As prices in India have come down, the sector could export more to the Gulf nations, including Saudi, after resolving the pending issues, he said.
The auctioneers pointed out that the market is witnessing selling pressure as farmers are liquidating their stocks at auctions fearing a further price drop.

V Sajeev Kuma for:
www.thehindubusinessline.com

VIETNAM PEPPER MARKET UPDATE 21ST SEPTEMBER 2020 – WEEK 39

 

 

PEPPER;  Regarding to data of Vietnam Pepper Association, In August, Vietnam imported 2,550 tons pepper, valued at 4.5 million USD. Imports mainly come from Brazil, Indonesia and Cambodia.  In The first 8 months Vietnam imported 19,321 tons (black pepper reached 14,849 tons, white pepper reached 4,472 tons), the total import turnover reached 36.8 million USD, compared to the same period in 2019, the import volume decreased by 33.5%.

 

Market opening today slightly firmer from last week. Have inquiries from Middle East/ASIA/USA/EU covering fourth quarter 2020 both prompt & further shipment. The USA more interesting full year 2021 shipment but we heard processors hesitate and ask much higher than market price due to adding more interest rate, storage cost. Chinese slowly buying again but they will be starting a long holiday from 1st to 7th Oct. During second half Oct might be more demand from China to cover 4^th quarter shipment.​