World pepper output to see 10% rise in 2002: IPC

World pepper output to see 10% rise in 2002: IPC

Reuters, Jakarta

World pepper output is expected to increase by 10 percent in 2002 to 310,000 tons due to rising production by major producers, the Jakarta-based International Pepper Community (IPC) said on Monday.

The IPC said that based on provisional estimates, pepper output in producing countries, was expected to rise by between 500 to 5,000 tons in 2002, except in Malaysia, the world's fifth largest producer, where output was seen declining by 1,000 tons.

"Significant increases are estimated to take place in Brazil, Indonesia, Vietnam and China," the IPC said in a statement.

Brazil is seen producing 45,000 tons this year from 35,000 tons in 2002 while Indonesia, the world's largest producer of white pepper and second largest for total white and black, is estimated to produce 60,000 tons from 55,000 tons last year.

India the world's largest producer of pepper, is estimated to produce 80,000 tons this year, a slight increase from 79,000 tons in 2001.

Vietnam, which has emerged as a big producer in the past few years, is seen producing 60,000 tons this year.

"But production in Malaysia would be less by 1,000 tons from 27,000 tons in 2001," IPC said.

The forecast comes in contrast to last week's estimate made by the Malaysian Pepper Marketing Board which said the country's pepper output was seen rising by eight percent this year as maturing vines planted in 1999 would boost output.

The IPC said world production rose by 13 percent to 282,500 tons in 2001 from 254,200 tons in 2000, namely due to a good crop in India and Vietnam.

The world's pepper exports stood at 208,924 tons in 2001, an increase of 21 percent compared to the previous year, mainly due to a jump in exports from Brazil and Vietnam and increases in smaller producers such as China, Madagascar and Thailand.

Indonesia, although its exports fell by 3,938 tons to 60,453 tons in 2001, was still the world's largest exporter, followed by Vietnam and Brazil.

A fall in exports, which also affected India, was partly due to low prices last year.

The IPC said pepper prices in 2002 would depend largely on supplies and noted that the second half of 2001 was considered the worst period for the world's pepper industry because of the increased output.

Pepper prices have experienced a steep decline in the last two years due to increased supplies, the IPC said.

"There is urgent need to increase world demand through proper and effective consumer promotion, to reduce the gap between supply and demand in the years to come," the IPC said,