Monthly Publication

During March 2016, the Price Index of Pepper decreased by 6.76 points for black Pepper and 6.0 points for white Pepper. (Table1). The composite price of black Pepper decreased by 5.7% to US$ 8,372 per Mt from US$ 8,875 in February 2016 and for white Pepper decreased by 4.8% from US$ 12,998 per Mt in February 2016 to US$ 12,377 in March 2016 (Table2). The decrease was mainly influenced by the significant decrease of FOB price in Vietnam, the largest Pepper exporting country; while prices at other producing countries were relatively stable.

Table1. IPC Price Index (Base Year: Average 2011 - 2015)

Note: The price index is calculated based on price developments in 2011-2015

Table 2: Composite Price of Black and White Pepper (US$/MT)

The market has shown a mixed response during March. Pepper Prices in India and Sri Lanka increased, while in Vietnam it has decreased. Marginal decrease was also reported in Lampung. In Sarawak and Bangka, the prices were relatively stable throughout the month

In India Pepper harvest has been completed in March. It is reported that the output was significantly lower when compared with the out-put of previous year. Pepper produce from this year harvest has already entered the market during the month, but no any significant effect on prices in India has been observed. Supported by huge internal demand and less production this year, Pepper market in India remained steady, though Pepper price has shown an increasing trend. During the month of March local price of Pepper in Kochi, India has increased from INR 622 per Kg at the beginning of the month to INR 649 at the months close. On an average, local price of Malabar black Pepper has increased by 4% from previous monthÔÇÖs average. In Sri Lanka, average price of Pepper at growing areas also increased to LKR 1,223 per Kg from LKR 1,208 in the first week of the month. On an average the price increased by 4% during March.

In March 2016 Pepper harvest in Vietnam was also in progress. New material from the initial harvest has been sold in the market. Trading however is still not brisk, as overseas buyers are expecting to get more competitive price. As per the information from VPA, It is anticipated that output of this year harvest in Vietnam will be better than predicted earlier and Vietnam is likely to take this advantage to expand market by lowering price. Local price of Vietnamese Pepper decreased during the first half of the month. Local price of black Pepper had experienced an improvement in the second half of the month. In terms of Fob price of black pepper in HCMC stood at the level of US$ 8,050 throughout the month, while for white pepper had decreased from US$ 12,250 per Mt at the beginning of the month to US$ 11,550 per Mt at the monthÔÇÖs end. When compared to average price during previous month, average local price of Vietnamese black Pepper decreased by 6%; and for white pepper decreased by 8%. Average FOB prices, has decreased by 10% for black and 8% for white Pepper.

In Lampung the market was very quiet, in view of limited stock in domestic market. Stocks available at farms have already exhausted. Only some strong farmers still keep limited stock. Perhaps because of decreasing price in Vietnam, Pepper price in Lampung experienced a marginal decrease during the month. In the first week of the month, local price of Lampung black stood at the level of IDR 104,000 per Kg decreased to IDR 102,000 per Kg at the following week till the monthÔÇÖs close. On an average local price in Lampung decreased marginally by 1%.

Muntok white Pepper price in Bangka prevailed during the month was at around IDR 160,000 per Kg. When compared with the average price in February, local price of white Pepper in Bangka increased by 5% and marginally 1% in terms of FOB price.

It is reported that production estimate of Pepper in Indonesia would be lower from last year. In addition to the number of dead Pepper vines due to very hot weather in the last drought season, heavy rains in Lampung and Bangka occurred in the last months has resulted in a lot of Pepper berries falls. In Kalimantan, 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 Sarawak Pepper prices were reported stable throughout the month. Local price in Kuching was reported at the level of MYR 29 per Kg for black and MYR 49 per Kg for white Pepper. In China, white Pepper price decreased marginally by 1%.

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 USD per MT

White pepper prices prevailing in local markets are shown in Table 5 and FOB prices in Table 6.

Table 5: Local Prices of White Pepper in USD per MT

Table 6: FOB Price of White Pepper in USD per MT