RI loses to Vietnam, India in pepper exports

BOGOR (JP): Indonesia is losing out to Vietnam and India in pepper exports, as the country has fallen from the top of the list of pepper exporters to third place this year, according to an official.

Sumpeno Putro, Indonesia's agricultural attache to the European Union, said here on Monday that Indonesia's pepper exports plunged as many importing countries had turned their orders to Vietnam.

"Indonesia won't be the world's largest pepper exporter this year. We will be replaced by India," Sumpeno said during a seminar on global trading of agricultural products.

Indonesia was ranked by the International Pepper Community (IFC) as the world's largest pepper exporter last year, followed by Vietnam, Malaysia and India.

Due to better production, Indonesia's pepper exports jumped to 57,000 tons last year, a 60 percent increase from 36,000 tons in the previous year.

Sumpeno predicted that this year Indonesia's exports would drop below 1999's level of 36,000 tons due to low production.

India, which was on top of the list in 1999, will likely regain its top position this year, with exports to reach 36,000 tons -- down 15 percent from 42,000 tons recorded last year.

"Vietnam will be in the second place of the world's largest exporters, followed by Indonesia, Brazil and Malaysia," Sumpeno said.

Sumpeno blamed Indonesia's relatively high pepper prices -- compared with Vietnam's black pepper prices -- for its failure to maintain its top position this year.

Indonesia's pepper was recently sold between US$5,450 and $5,500 per ton, compared to Vietnam's black pepper prices that was about $3,950 to $4,000 per ton.

"Although Vietnam increased its pepper price to $4,400 per ton recently, it is still much cheaper than pepper from other countries," Sumpeno said.

Sumpeno said some traders from Singapore and Indonesia had bought Vietnam's cheap pepper to be resold in the international market.

According to an IFC report in April, Indonesia's pepper exports this year will be lower than last year's due to a fall in production.

Indonesia's pepper exports began to decline in January this year. Pepper exports in February, for instance, plunged by 28 percent to 1,564 tons from 2,170 tons recorded in the same month last year.

The IFC said Indonesia's declining pepper output was due to unfavorable weather conditions.

Despite the drop of pepper exports by major producing countries, the organization projected that the world's total pepper exports would increase slightly by 6 percent this year to 183,000 tons from 175,603 tons last year. (21/03)