Monthly Publication

During May 2016, the Price Index of Pepper increased by around 4 point for black Pepper and 3 points for white Pepper (Table1). The composite price of black Pepper increased by around 3.30% to US$ 8,704 per Mt in May from US$ 8,426 per Mt. In April 2016 and for white Pepper it increased by 2.20 % from US$ 12,136 per Mt in April 2016 to US$ 12,403 in May 2016 (Table2). The Pepper price was mainly influenced by the increase of FOB price in Vietnam and India comprising the largest Pepper exporting country; it were noticed that FOB prices in India saw increasing Pepper price while other producing countries were relatively stable.

Table 1. IPC Price Index in US$/Mt
(Base Year: Average 2011 - 2015)

Table 2:
Composite Price of Black and White Pepper in US$/Mt

The market has shown a mixed response during the month of May. Pepper Prices in India, Sri Lanka and Vietnam has increased, while pepper prices are stable at other producing countries. In Lampung, Sarawak and Bangka, the prices were relatively stable throughout the month. Though pepper stock availability has declined but prices are quite stable. The activities in trade would be quite noticeable from the month of July, once Pepper harvesting starts in Indonesia.

In India and Vietnam Pepper harvest has been almost completed. In India, it is reported that the output was significantly lower when compared with the out-put of previous year and comparatively prices are high this year. The market is supported by large internal demand and less production this year, Pepper market in India remained volatile and Pepper price has shown an increasing trend. On an average, local price of Malabar black Pepper has increased by 2.30% from previous monthÔÇÖs average. In Sri Lanka, average price of Pepper at growing areas has also increased to the extent of 2.34%. In Sri-Lanka, itÔÇÖs the new harvesting year has started from the month of May.

In Vietnam Pepper trading has started picking up and volatility in prices are noticed, as overseas buyers are expecting to get more competitive price, due to better harvest this year. As per the information from VPA, output of this year harvest in Vietnam is better than predicted earlier and Vietnam has benefit of better market hold. Local price of Vietnamese Pepper has increased by around 9.41% during the month. In terms of FOB price of black pepper in HCMC stood at the level of US$ 8,435 throughout the month, while for white pepper had has almost maintained the price of US$ 11,925 per Mt . When compared to average price during previous month, average FOB prices, has increased by 4.80% for black Pepper and 3.25% for white Pepper.

In Lampung the market is still very quiet, in view of limited stock in domestic market stocks available at farms is very less. Only few strong farmers still keep limited stocks. Perhaps because of stabilizing price in Vietnam, Pepper price in Lampung maintained stable situation. Local price of Lampung black stood at the level of around IDR 100,990 per Kg.

Muntok white Pepper price in Bangka prevailed during the month was at around IDR 156,000 per Kg. Even FOB price of white Pepper was almost stable without any volatility.

It is reported that production estimate of Pepper in Indonesia would be lower compared to the previous year. In addition to the number of dead Pepper vines due to very hot weather situation in the last drought season, heavy rains in Lampung and Bangka which has been seen this month has resulted in many Pepper berries falling down. In Kalimantan and Sulawesi island of Indonesia, production of Pepper is also estimated to be less due to erratic rainfall during this season. Weather condition is reported to be not favorable this year.

In Malaysia the harvesting season for Pepper has started from this month. The effect is quite noticeable in price movements over the month. In Sarawak black Pepper prices were reported lower for local Pepper price by -0.30% and FOB price was less by -1.38% for the month of May. Local price in Kuching was reported at the level of MYR 28.70 per Kg for black and MYR 51 per Kg for white Pepper. In China, white Pepper price increased marginally by 0.40%.

Black Pepper prices prevailed in local markets are shown in table 3 and FOB prices in Table 4, while for white Pepper are in table 5 (local) and FOB prices in Table 6.

Table 3:
Local Price of Black Pepper in US$ per MT

Table 4:
FOB Prices of Black Pepper in US$ per Mt.

Table 5:
Local Prices of White Pepper in US$ per Mt.

Table 6:
FOB Price of White Pepper in US$ per Mt.