Date:18/04/2005 URL: http://www.thehindubusinessline.com/2005/04/18/stories/2005041800410700.htm

Back Global pepper output may dip as growers shift to other crops

G.K. Nair

Kochi , April 17

PEPPER growers in many producing countries are slowly switching over to other crops as the commodity continues to fetch low prices in the world market.

As a result, world production is likely to be less than that in the previous year, according to international reports.

"The continuing low prices have pushed production down in many producing countries," said a report of the International Pepper Community.

Though the Vietnam crop this year is reported to be less than last year, the country is still a major factor influencing the world market as the biggest supplier of the commodity.

The report said in Indonesia many farmers had begun replacing pepper vines with other cash and food crops. Also, heavy rains in February in Lampung and South Sumatra could have harmed the crop. However, its impact on the crop is yet to be known, it said.

In Malaysia, which has a high cost of living compared to other pepper producing countries, increasing labour costs and low prices of pepper have led to a decline in production.

According to the International Pepper Community, Indian production is "relatively stable." However, "with increasing domestic consumption and the State Government committed to supporting prices, farmers are unwilling to sell at the current low levels," it said.

The current low prices, coupled with increase in prices of fuel and fertilisers, is said to have compelled many growers in several pepper-growing countries, including Vietnam, to either neglect the existing vines or shift to other remunerative crops, another overseas report said.

Consequently, this year the crop size will be 30 per cent less "with the big drop being seen in vines belonging to seasoned farmers. However, new vines belonging to new farmers will boost crop size by roughly 10 per cent, making the overall decline in crop size at 20 per cent, said the report.

In Vietnam the current crop is unlikely to be asbig as2004.

In Indonesia's Bangka Island, the report said, farmers had turned to tin mining, removing pepper vines.

According to the report, Brazil, like Indonesia, has been experiencing abundant harvest from 2001. Consequently, the vines here were "exhausted" and need nutrients; but the current low prices are depriving plants of fertilisers, the report said.

Given this situation, new planting of vines is not taking place anywhere except Vietnam, as the farmers seem reluctant to invest in this crop, the report added.