Date:03/01/2009 URL: http://www.thehindu.com/2009/01/03/stories/2009010356181500.htm

Business

Farmers wary of dip in pepper prices

E.M. Manoj

Scanty stock, economic crisis, online trading are cited as major causes

Prospects: This year’s pepper production in Wayanad is expected to be around 5,000 tonnes.

KALPETTA: The sharp fall in prices and substantial decline in production have reportedly put pepper growers in Wayanad in a spot of bother.

The spot price for MG-1 pepper (ungarbled pepper) is Rs.100 a kilo gram now on the Meenangadi pepper market as against the Rs.135-140 during the same period last year.

The prices touched Rs.95 a kg recently. The spot price for MG1 (garbled pepper) fell from Rs.145 to Rs.105. The price of the indigenous Wayanadan pepper also declined from Rs.140 to Rs.106 during the period.

According to sources, the scanty stock and availability of pepper, the economic crisis and online trading were the major causes of the present dip in prices.

The exaggerated production forecast released by Indonesia at the International Pepper Community Conference in Vietnam on November 24, 2008, was also a reason for the dip, sources said.

The forecast stated that the total output from Indonesia would be 60,000 tonnes in 2008-09 against the 35,000 tonnes in the corresponding period last year.

Wayanad also saw spells of various diseases affecting pepper vines.

“Till a few years ago, I used to get 14 quintals of dried pepper from one acre of land. I will be happy if I get 5 kg this time,” says Jomon of Mamiyalil, a farmer at Parudeesakkavala in Mullankolly panchayat.

“The quick wilt disease is a threat. It had taken its toll on the harvest in 1995-97 also. Also, online traders have made pepper trade a gamble,” according to M. Sukumaran, a farmer in Pulpally panchayat.

“The prices are decided by online traders and it is speculative. They do not base their prices on the actual availability of pepper,” Mr. Jomon said adding that this gambling had affected small farmers the most.

“We expect a minimum shortage of 2,000 tonnes this year in the district,” said Salu of Cholayil Spices, a wholesale pepper merchant in the district.

According to estimates, this year’s production from Wayanad would be around 5,000 tonnes, the sources said. As per Spices Board estimates, the total production in the State would be 25,000 tonnes in the current year.

Market sources said the prices might improve a little after January 7, when the market opens after the New Year holydays.