Monthly Publication

In September 2014 pepper market continued to be steady. Further increase in Pepper prices was observed in most of the origins except in Malabar black in Kochi, India. Malabar pepper experienced a marginal price decrease in the second half of September.

Pepper price index has increased further by 10.48 points for black and 7.14 points for white pepper. (Table 1). The composite price of black pepper increased by 3.2% to US$ 9,694 per Mt from US$ 9,392 in August 2014 and composite price of white pepper increased by 2.5% from US$ 12,378 per Mt in August 2014 to US$ 12,682 in September 2014. Although pepper price in India has experienced a marginal decrease, the composite price in September 2014 recorded the highest achieved so far. (Table 2). This situation reflected demand for pepper from the importing countries remains high and stock at producing countries has declined.

Table1. 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

In Brazil, the price of Brazilian pepper prevailed in September 2014 increased marginally in local market from BRL 19.75 per Kg at the beginning of September to BRL 21,00 at the month-s close, Fob price of Asta black was relatively stable at US$ 9,950 per Mt. Pepper harvest in Brazil has completed in September, a little earlier than normal. The price increase at the end of harvesting season reflected that the output is not as good as expected. The situation is also indicated by the export performance achieved in 2014. Up to August 2014, export of pepper from Brazil was 16,260 Mt; a decrease of 1,300Mt from 17,560 Mt in the same period last year. In September 2014 a volume of around 2,500 Mt. is estimated to have been shipped from Brazil.

In Lampung, although the prices increased further, the market in September has responded calmly. This was due to limited stock available with the farmers in view of the drastic fall of production this year. During September 2014, local price of black pepper in Lampung has increased by IDR 5,500 per kg to IDR 109,000 at the month-s close. While in Bangka the local price of white pepper increased to IDR 148,000 per Kg from IDR 146,000 at the beginning of the month. Fob price of Lampung Asta increased by US$ 300 per Mt to US$ 10,200 per Mt at the month-s close. Up to September 2014 export of pepper from Indonesia is estimated at the level of 25,000 Mt, comprising of 15,000 Mt of black and 10,000 Mt of white pepper, as against 32,600 Mt exported in the corresponding period of the last year.

In Ho Chi Minh City, local price of black pepper increased from VND 185,000 per kg to VND 192,000 at the end of the month. In the case of white pepper, the price also increased by VND 33,000 pr Kg to VND 247,000. Fob price of black pepper increased by 7% while 11% increase for fob price of white pepper was reported.

2014 is a very encouraging for pepper farmers in Vietnam. They can realize good income from pepper by releasing pepper from good harvest this year with high price. Up to August 2014 Vietnam is reportedly has shipped 126,350 Mt. Out of that, around 10% was white pepper. Up to September, export from Vietnam is estimated to have crossed 135,000 Mt. Vietnam is estimated to realize target to export 150,000 Mt much earlier this year. This is possible since Vietnam has realized good harvest this year. In 2015, however, production of pepper in Vietnam is estimated to be lower.

In Kochi, India, local price of Malabar black decreased from INR 700 per KG at the beginning of September to INR 639 at the month-s close. On an average, the local price decreased by 4%. Fob price of Malabar Garbled also decreased by 3%. Although production of pepper this year was reported to have the lowest, Pepper export from India is estimated to be more than estimated earlier. This is possible since import of Pepper to India has increased further during this year. In the 41st Session of IPC, it was reported that export of pepper from India is estimated at the level of 15,000 Mt. India realized export 20,000Mt of pepper in 2013.

In Sarawak, local price of pepper in September 2014 were stable at MYR 25 per kg for black and MYR 35 per kg for white pepper. Fob prices of Sarawak pepper increased marginally by 1%. Production and export of pepper in Malaysia is estimated to increase marginally during this year. The increase is indicated by the export performance of 7,200Mt achieved up to July 2014 against 6,000 Mt in the same period in last year. In Sri Lanka, pepper prices decreased during September. This may influenced market situation in India. Due to unfavorable weather condition this year, production of pepper in Sri Lanka is estimated to decrease significantly. Similarly export of pepper from Sri Lanka also decreased this year. Up to July 2014 Sri Lanka exported 5,000 Mt as against 9,200 Mt in the same period last year.

Under the situation of short supply, pepper price at the remaining months is expected to remain high until early 2015 and expect a significant change in early 2015.

Black pepper prices prevailed in the local markets are shown in Table 5 and FOB prices in Table 6; while for white pepper are shown in table 7 and 8.

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

Table 7. Export of Pepper by Country during August and January - August (2014 and 2013)