Monthly Publication

During July 2015, the Pepper Price Index increased by 9.60 points for black Pepper and 3.81 points for white Pepper (Table 1) .The composite price of black Pepper increased by 3 % from US $ 9138 in June 2015 to US $ 9414 in July 2015, while that of white Pepper increased 2.88% from 13,056 per MT in June 2015 to US $ 13,432 per MT in July 2015 (Table 2)

Table 1 . IPC Price Index in US$/MT (Base Year: Average 2006 - 2010)

Note: The price index is calculated based on price developments during 2006-2010

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

Pepper market continued showing a strong price hold even in the month July 2015 and prices increased consistently compared to the month of June 2015.The higher prevailing prices showed no selling pressure in the market. Based on the increase in demand supply of Pepper in the producing countries remained stable .As in Sri-Lanka , itÔÇÖs the end of harvesting month ,whereas in Malaysia harvesting is still going on and in Indonesia harvesting of Pepper has just started in Lampung province. As this month being the month of Labaran, farmers are excited to have some cash flow from the sales of Pepper.

In India, Malabar black Pepper increased nominally by INR1 per kg from INR632 at the beginning of the month to INR633 to the end of the month. Comparing local average price of the Pepper from the previous month it has increased by around 2%.

In Vietnam local price of black Pepper was stable ,price of black Pepper decreased from beginning of month from VND208ÔÇÖ411 to VND200.010 per kg to the end of month. Further White Pepper price increased from beginning of the moth from VND269ÔÇÖ382 to VND269, 506 to the end of the month. In dollar terms average price of black Pepper increased by 4% and white Pepper increased by around 1% compared to the month of June.

In Lampung, local price of black Pepper in the beginning of the month was IDR112, 850 and close of the month it decreased to IDR112, 500 per kg. In dollar terms price change was insignificant compared to the previous month of June .It is the starting month of harvest of black Pepper, which is estimated to be good harvest this year compared to previous year.

In Banka also, Price of white Pepper movement were no different than that of black Pepper price. In July price of white Pepper decreased from IDR181, 776 in the beginning of the month to IDR172, 000 per kg in the end of the month. In dollar terms average price decreased by 3.47% compared to the month of June. White Pepper is mainly from Banka province of Indonesia. In this year, it is reported to have better crop and harvesting to be better compared to previous year. Other sources of White Pepper are Kalimantan and Sulawesi which would start harvesting in the coming months.

In Sarawak, Malaysia, black Pepper price decreased from MYR28 to MYR27 and white Pepper price increased from MYR43 to MYR46 per kg from beginning of the month to close of the month respectively. In dollar terms however price of black Pepper increased by around 4.4 % and white Pepper by 8% compared to the previous month.

In Sri-Lanka, local price of black Pepper decreased in beginning of the month from LKR1150 to LKR1131 to the close of the month. In dollar terms, average price increased by 3.33% compared to the previous month. Supported by favorable weather conditions production of Pepper is estimated to be better this year.

In Brazil, the Pepper market is still slow, as it is being fag end of the stock availability in the country. New crop is drawing close from the month of September onwards. Most Brazilian exporters are expecting more buying activities in the coming month .United states is the major importer of the Brazil Pepper followed by Europe and South America.

On the basis of above price movements, it is seen that price has remained overall stabilized with not much volatility in the market during the month. As month of July is still the harvesting period of Sri Lanka, Malaysia and starting harvesting season of Indonesia.

Black Pepper and white Pepper price prevailed in local market are shown in Table 3 and 5 respectively, whereas FOB price of Black and white Pepper in table 4 and Table 6 respectively.

Table 3: Local Price of Black Pepper in USD per MT

Table 4: FOB Prices of Black Pepper in USD per MT

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

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