Monthly Publication

During February 2013, the Price Index for black pepper increased by 5.80 point and for white pepper increased by 4.14 points (Table 1). The composite price of black pepper increased slightly by 2.5% to USD 6,837 per mt from USD 6,670 in January 2013, while that of white pepper increased by 1.9% from USD 9,200 per mt in January 2013 to USD 9,377 in February 2013 (Table2).

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)

In February 2013 the market was slower, particularly in Vietnam, Lampung and Sarawak in view of Lunar New Year. Traders in these countries were taking long holiday for celebrating the event. Slow trading was also witnessed in India due to limited material from current year-s harvest which entered the market. Although harvest in India has started, but no significant implication was recorded in influencing market direction. During the month, market watched on closely the development of pepper harvest in Vietnam, which is expected to up-swing in February end. Pepper prices in Vietnam, Lampung and Sarawak were relatively stable; while in India and Brazil the average price was higher than that of the average price in January 2012.

In the first half of February, India has taken center stage in view of absence of Vietnam and Lampung from the market. The market however showed a slow movement since only small quantity from the new crop of India which arrived in the market. Slow movement was also indicated by the limited volume traded in the Commodity Exchange, India.

It was reported that production of pepper from this year crop in India would be around 55,000 mt. However some sources reported that output from this year harvest would lower than estimated earlier. During the first three week local prices in India fluctuated at narrow range between Rs. 395 to 400 per kg. Closing the month however the price then decreased to Rs. 373 per kg. The decrease was influenced by development in Vietnam, which is harvesting pepper and players started enter the market after taking long holidays. On an average however, pepper prices in February remained higher from the average price in January 2013, both in local price as well as fob price.

In Vietnam, the market was quiet during the first half of the month due to the long Lunar New Year holiday. Some activities in the market took place only in the 3rd week of the month, but transactions were still limited. Pepper prices during the month has changed at narrow range between VND 118,000 - 120,000 per kg; while that for fob price were stable at USD 6,250 per mt for black 500g/l and USD 6,650 per mt for 550g/l On an average the local price was stable, while for fob increased by 2%. In the case of white pepper, average price Vietnamese white pepper increased by 3% locally and marginally increased by 1% for fob.

In Lampung, the price of black pepper was stable at the level of IDR 55,000 per kg over the month with limited activities, due to very limited stock available in the domestic market. In dollar terms a slight improvement were recorded, due to fluctuation of local currency against US dollar. Compared to average price in the previous month, the average price of black pepper decreased marginally by 1%. In Bangka, average price of white pepper increased by 4%.

During February, Indonesia has exported 1,086 mt of black pepper from Lampung. The export was significantly lower when compared to the export of 2,253 mt in the previous month. This reflected the carry over stock from 2012 has limited. Due to heavy wet weather during flowering and fruiting season, it is estimated this year crop of pepper in Lampung would be lower.

In Sarawak some activities was also halted in the first half of the month in anticipation of Lunar New Year. The prices in local market were relatively stable at MYR 16.30 per kg. In the fourth week of the month, the price increased to MYR 16.45. In dollar terms however, average prices in February decreased marginally by 1%. Fob price of Sarawak black increased from USD 7,390 per mt at the beginning of the month to USD 7,450 at the month-s close. Similar to the black, Sarawak white pepper pries prevailed during the first three weeks were stable, but in the fourth week increased marginally. Compared to average price in the previous month, the prices were relatively stable.

It was reported that pepper price in Brazil decreased from BRL 12.00 to BRL 11.20 per kg locally and from USD 6,650 to 6,450 per mt fob. In dollar terms however, average local price of Brazilian pepper increased by 3% and for fob was relatively stable. In Sri Lanka, pepper price at growing areas decreased from LKR.705/kg at beginning of the month to LKR 679 in the third week of the month. Closing the month, the price then increased to LKR 694. Compared to the average price in the previous month, a number of 2% decreased was recorded.

Black pepper prices prevailed in local markets are shown in Table 3 and FOB prices in Table 4 below.

Table 3: Local Price of Black Pepper in USD 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