Pepper exports up 36% in first quarter

JAKARTA (JP): The country exported 7,049 metric tons of pepper from January to April, 36 percent higher than the corresponding period last year, according to the International Pepper Community (IPC).

IPC said on Wednesday the volume of Indonesian black pepper exports showed a downward trend but the volume of white pepper exports consistently increased.

"This phenomenon indicates a very limited inventory for black pepper until the upcoming crop sometime in September or October," IPC said in its latest market review.

The country's monthly pepper exports totaled 1,815 tons in April, comprising 280 tons of black and 1,535 tons of white pepper. It represented an increase of 4.5 percent compared to 1,736 tons in March and 1,883 tons in February.

Indonesia is the world's top producer of white pepper and ranks the second highest black pepper producer after India. White pepper is mostly grown on Bangka Island, South Sumatra, which accounts for 90 percent of the country's output, while black pepper is produced in Lampung, also in South Sumatra.

IPC said the world pepper market during April was active, but new stocks from Vietnam and Malaysia caused a downward trend in prices.

"Pepper prices at source markets have decreased in the range of 1.9 percent and 9.2 percent when compared to the prevailing average price during March 1999," the market review said.

"Prices have been shown to increase in May 1999 and the trend appears to continue until Brazilian and Indonesian crops come."

IPC is an intergovernmental organization of pepper-producing countries comprising Brazil, India, Indonesia, Malaysia, Sri Lanka, Thailand, Papua New Guinea and Micronesia.

Earlier this year, IPC predicted Indonesia's pepper exports would drop 26 percent to approximately 30,000 tons this year, from 37,800 tons last year, due to unfavorable weather conditions.

Total pepper exports from the three main producing countries -- India, Indonesia and Malaysia -- rose 31 percent to 27,691 tons in the first four months of this year, from 21,111 metric tons in the same period of 1998.

World pepper exports reached 125,957 tons in 1998, down from 138,589 tons in 1997. (udi)