The availability of smuggled Vietnam pepper from Myanmar and Nepal has curtailed the demand in Jharkhand and Bihar markets, HinduBusinessline reports. Traders are slow in procuring from the domestic market, as they can source the imported stuff at lower prices with hardly any GST in cash and carry mode. Vietnam pepper is priced at Rs.150 a kg.
Statistics from Vietnam Pepper Association for January-April 2020 show that Myanmar imported 4,000 tonnes of pepper from Vietnam as against 771 tonnes in the corresponding period last year. Likewise, Nepal imported 4,000 tonnes (2,300 tonnes). China is the biggest importer with 23,250 tonnes (25,000 tonnes).
Meanwhile, the Kochi market witnessed a surge in arrivals at 48 tonnes which pulled down the prices by Rs.1 per kg at Rs. 305 a kg for ungarbled varieties.
Vietnam is the world’s largest producer and exporter of black and white pepper. The biggest advantage of Vietnam is their huge production and the highest productivity in the world. Thanks to these factors, the country can offer the lowest prices across the world. Even Indian manufacturers of value added products depend mainly on imported pepper. North Indian markets also sell imported pepper as it is cheaper compared to the local grades.
The U.S. market continues to be the largest importer of pepper from Vietnam. Other markets like India , Saudi Arabia , Pakistan, Netherlands and Spain have also seen an increase in their imports. With 50 per cent global market share, Vietnam has been able to dominate the market. Vietnamese pepper products are exported to 90 countries and territories, with the EU and Asian countries being the largest export destinations.