The International Pepper Community (IPC) - gathered in India this week - has agreed to tackle falling pepper sales, aiming to get quality standards accepted by importing and exporting countries all around the world.
Meeting throughout this week in Cochin, the IPC executive director K.P.G. Menon told members that the Malaysian government has already taken initiatives in registering these standards proposed by IPC with CODEX alimentarius.
The community heard how for the period January to July 2003, the six major exporting countries moved around 92,252 metric tonnes of pepper as opposed to 100,119 tonnes in the corresponding period last year.
Of this, Vietnam, which emerged as the largest pepper supplier in the last two years, saw an 8 per cent fall in its pepper exports from 55,208 tones to 50,923 tonnes during the same seven month period.
The IPC, in existence since 1972, started as 'Pepper Community' with India, Indonesia and Malaysia as members. Brazil joined later, followed by Thailand and Sri Lanka. The member countries account for about 70 - 80 per cent of the total production and export in the world.
A key issue currently facing the pepper industry is the gap between supply and demand, or more precisely, how to reduce it. Whereas supplies have increased considerably over the past four years, demand has remained static or seen only a nominal increase. As a result, the price of pepper has dropped sharply in recent years.
The IPC claims that pressure and 'unhealthy' competition have also played a role in the steep decline in pepper prices.
Vietnam, the world's largest pepper exporter, is not a member of the IPC, but Menon said this week that the country is expected to join shortly, a move that will offer some relief to slack pepper prices.
In a bid to raise the export figures, Menon added that the IPC is currently looking at the generic promotion of pepper, spices and medicinal plants with an emphasis on support for new product development and captive markets for the medicinal properties, herbal remedies, neutraceuticals and natural pharmaceuticals, food colourings, flavours and aroma including the crucial support provided through validating appropriate research.