G. K. Nair

Kochi, May 23
Pepper prices in the international markets are at higher levels, albeit, of course, below the Indian parity, on limited availability from all the origins. Of late, the problem has become more acute after the US imposed restrictions on imports of pepper from Vietnam.

This phenomenon is said to have resulted in inordinate delays in getting the Food and Drugs Administration clearance for the consignments from Vietnam. This, in turn, has paved the way for other origins to get into the US markets.

Brazil, which is in the proximity of American markets reported to have almost exhausted its stocks while the carryover stock in Indonesia is also said to be very thin. Given this situation, the alternative source is India. But, the Indian parity is at higher levels, i.e., $200-300 a tonne above the Indonesian parity. This producer, monitoring the Indian futures market closely, undercut its prices so as to corner overseas orders. If the Indian parity remained competitive some orders might come to India.
...

From The Hindu Business Line...