The annual market for Pepper oil is about 55-60mt.
The pepper oil is produced in the world from light berries(immature pepper which has less of starches)
In the earlier times ,these berries were available ,as traders routinely rejected them,for whole/ground spice purposes.
India was a leading producer of the world,and the other countries like Indonesia/Brasil much less.
However gradually Vietnam became the major producer and the acreage in India went down.The area vacated was devoted to other crops like cardamom.
The demand for black pepper as a spice continued to rule firm in India and thus export took a back seat.
Today Indian exports are much less and their position has been taken by Vietnam.
The demand has meant that farmers do not want to sell the light berries to the Indian distillers of pepper oil,as the realisation from the spice market is much better.
Thus a majority of the demans for light berries is met from Sri Lanka/Vietnam and Indonesia
Out of these Sri Lanka give the best material
The price for the Sri Lankan material has been very high and goes up by the day(their crop got over in uly and the next one comes in February)
There are no stocks and availability is extremely poor.
The sentiment is very bullish and people are talking of prices of $250/kg.
We do not foresee the prices of PEPPER OIL oil coming down until Februay(Sri Lankan crop).
