Signs of Indian pepper losing flavour in major European destinations are already evident with the exports slipping to lower levels during the first four months of the running year.

Marketmen told The Financial Express that the last week's spurt in prices in the domestic market was triggered by the scramble by traders to buy ready goods to cover their positions. However, farmers amused by the renewal of activities expected the price to pep up further and hold on to their stock leading to a tight supply.

But the rally was shortlived with prices coming crashing this week. Garbled pepper closed on Friday at Rs 23,000 per tonne level as traders see no point in buying at higher levels. ``US market has turned cold towards Indian pepper following unrealistic prices. We expect the price to climb further down in the coming months,'' former president of IPSTA,T Vidyasagar, has said.

He said the international pepper market is in for a shake-out with South East Asian nations ironing out the gap in the supply chain. Till last year, Indian pepper was only at offers at major ports during the first three months of the calender year. However, from this year onwards, South East Asian countries have plugged this gap and pepper is available in the market throughout the year.

Vietnam pepper is in offer at major ports at a price much lower than the Indian offering. ``Vietnam is offering pepper at much lower levels in all major ports. The US, which was the major buyer of Indian pepper is not buying following the high prices,'' Vidyasagar said.

He said, the southward journey of Indian pepper exports are already evident with the exports falling considerably during the first four months of the current calender year. The total exports from India during the first four months was just 10,000 tonnes compared to the 16,000 tonnes exported during the same period last year. He said international pepper market is in for a shakeout following the aggressive drive by the SE Asian nation to enhance theproduction and productivity of black pepper.