Indonesia

Dear Editor,
30/07
Indonesia which until three weeks ago, has been offering black pepper at usd 4500- 4600 a tonne, has suddenly turned out to be the cheapest source of this spice in the world. Thanks to the recent melt-down in its domestic prices, which happened as the wotlds largest oprerator of Black pepper who was buying the farmgrade pepper also competing local exporters withdrew from the market and indeed has become an agressive seller. The harvest is coming to an end contrary to the news of Indian media that the crops in Indonesia is delayed commented one of the top domestic exporter.Though the price crash comes as a boon to exporters, they are, however, cautious about responding to any new contracts for string shipments till the end of the year and are more comfortable in working for nearby shipments and offers are made at usd 4200-4225 pmt cfc 1.5 Ny . It is estimated by the agricultural department that nearly 25,000 tonnes of black pepper would be harvested in the current year although a section feels the crop is only 15000 mt and another section feels the crop is 35000 mt.

The Indian Black Pepper Futures is dominated by bull operators who have made the prices to usd 4650 pmt fob cochin for the Indian variety Mg-1 asta grade making it the worlds most expensive pepper which was well in line with other producing origins till four weeks ago.Thanks to the huge demand by the domestic operators after the prices crossing above Rs 200 per kg in the producing states kerala and karnataka .You can buy Black pepper much cheaper than what it is quoted in Cochin said an exporter.

Though Indian pepper in value-added forms has great demand in the world market, exporters of such products are sourcing their requirements from Indonesia since last ten days as the landed cost of this pepper in Kochi is only Rs 190/-kg and the neighbouring island nations pepper landed cost in kochi is only Rs 185/-per kg., said a Kochi-based exporter. Attracted by lower price, Indian processors have booked about 500-650 tonnes of pepper from Indonesia in the last week. This has surprised the bull operators as some exporters who were heavily long in the indian exchanges physical stocks are likely to deliver it back to the fellow citizens as they have got replacement Rs 25/kg below indian Black pepper for their value addition. With declining demand for the spice from abroad, and increasing prices domestically India has become a net importer of the spice in the first quarter of this financial year according to the statsistics made available by the Cochin Chamber of commerce and industry.
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