Monthly Publication

During April 2015, the Price Index for black Pepper increased slightly by 0.16 point; while for white Pepper decreased by 1.76 points (Table 1). The composite price of black Pepper increased by 0.1% to US$ 8.964 per Mt. from US$ 8,959 in March 2015; while composite price of white pepper decreased by 0.6% from US$ 12,862 per Mt. to US$ 12,787 Mt. in April 2015, (Table 2).

Table 1 : IPC Price Index (Base Year: Average 2006 - 2010)

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

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

The market of Pepper remained strong during the month and activity was more dynamic particularly in Vietnam and India. At domestic market of all origins, Pepper prices were relatively stable with a slight increase. FOB prices also increased, except in Vietnam.

In India the price increased further, after experiencing a declining trend at the beginning of the year. This indicated that material from recent harvest has deflated. Strong internal demand for industrial uses, catering services as well as for house hold consumption, have significantly absorbed material from recent harvest. Even, India also imported significant quantity for industrial uses, particularly from Sri Lanka and Vietnam. In April Pepper price in India increased from INR 545 per Kg at the beginning of the month to INR 585 at the monthÔÇÖs close. On an average, the price increased by 4% compared to the average price in March 2015.
In Vietnam, the price of black Pepper has fluctuated between VND 175,000 to VND 179,000 per Kg. The price then stood at the level of VND 178,000 per Kg throughout the fourth week of the month. When compared with price prevailing during the previous month, average price in April increased by 3%. Although Pepper harvest in Vietnam has just concluded, with the situation of comparatively lower harvest than the previous year . Further supported by good capacity of farmers to hold Pepper stocks from recent harvest, producers in Vietnam were not interested to release material at reduced price. Consequently, local price in Vietnam continued to be strong.

In the case of white Pepper; the price of Vietnamese white Pepper decreased in the second half of the month. When compared with the price prevailed in the last few months however, the price was recorded stable. FOB prices of black and white Pepper decreased during the month from US$ 9,050 per Mt of black at the beginning of the month to US$ 8,750 per Mt at the monthÔÇÖs close. Fob price of Vietnamese white Pepper also decreased from US$ 12,950 per Mt at the beginning of the month to US$ 12,250 per Mt at April end.

Pepper harvest in Sarawak has started. A marginal increase in output is anticipated this year. However the impact to the international market is not significant. Prices prevailing in the domestic market remained high. Although local price of Sarawak black Pepper has experienced a marginal decrease during the fourth week of April to MYR 29 per Kg, average price of Sarawak black Pepper is still higher when compared with the average price in March 2015. Sarawak white Pepper stood at the level of MYR 40 per Kg throughout the month.

In Lampung, the prices were relatively stable at around IDR 110,000 per Kg. In Dollar terms however, the price has fluctuated due to local currency fluctuations against US Dollar. The market was very quiet as stocks from last year harvest had totally exhausted. Buyers are expecting new harvest arrival, which is expected to arrive in the market by July. Although output in Lampung is anticipated to be better this year, sellers are still cautious to make offers. Last year, export of Pepper from Lampung decreased significantly as a result of significant less out-put last year. Due to limited stock brought forward from previous year, exports of pepper from Lampung during the first four months were reported less. In Bangka, white pepper price is also stable at the level of IDR 170,000 per Kg. In Dollar terms, the price has also fluctuated.

During April 2015 Pepper price at growing areas in Sri Lanka fluctuated with a slight increase. Average price of Sri Lanka Pepper was at the level of LKR 1,060 per Kg during the month. When compared with the average price in the previous month, a marginal increase of 1% was recorded. This year, production of Pepper in Sri Lanka would be better, but still lower when compared to the production realized in 2013.

Pepper prices of black Pepper (local and FOB) are shown in tables 3 and 4; and prices of white Pepper (local and FOB) are shown in tables 5 and 6 below.

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