Monthly Publication

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During February 2017, the Price Index for black pepper decreased by 5.34 points and for white pepper decreased by 5.36 points (Table 1). The composite price of black pepper decreased by 5.7% to US$ 6,571 per Mt from US$ 6,968 in January 2017, while that of white pepper decreased by 5.5% from US$ 10,175 per Mt in January 2017 to USD 9,620 in February 2017 (Table 2). As the major supplier, Viet Nam was the main factor influencing the significant fall of the price index.

Table 1. 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)

In February 2017, the market showed a slowed down. Except in Sarawak, pepper price prevailed during the month decreased at different levels. Buyers watched closely the market development in Viet Nam, the main supplier which was in harvesting season. The output of this year harvest in Viet Nam is expected to remain good. Under this situation, market pressure was unavoidable and price decrease has occurred in Viet Nam during the month. As the largest supplier, market development in Viet Nam has affected market situation in other producing countries.

Entering February pepper market in Viet Nam remained calm and trading was limited, since material from this year harvest was yet to arrive in the market. The price however has drifted lower from VND 127,000 per kg for black at the beginning of the month to VND 112,000 per Kg at the monthÔÇÖs close while that for white pepper decreased from VND 175,000 per Kg to VND 157,000 per KG. When compared to average price in the previous month, the average of local price decreased by 9-10%, while for FOB decreased by 9% for black and 6% for white pepper.

In India, the harvest was on the full swing, but the market showed a slow movement since only small quantity from the new crop has arrived in the market. Major portion of pepper harvested was absorbed by internal market. It was reported that production of pepper from this year crop in India would be slightly better, but lower than estimated earlier. In the last IPC Session held in August 2016, production of pepper in India during 2016 was reportedly at the level of 48,500 Mt and in 2017 an increase of around 5-10% is anticipated. During February 2017 pepper prices in India decreased from INR 628 to INR 585 per kg. On an average, pepper price in Kochi during February decreased by 7% from the average price in January 2017.

In Indonesia, the market was very quiet during the month. This was due to very tight stock available at farm. In addition to the above, decreasing price trend which influenced by the situation in Viet Nam has contributed to the quiet situation at other sources including in Indonesia. In Lampung, local price of black pepper decreased by IDR 6,000 per kg to IDR 70,000 at the monthÔÇÖs close. In Bangka, white pepper price has also decreased from IDR 124,000 per Kg at the beginning of the month to IDR 114,000 per Kg at the second week of the month. The price then stood at this level till the monthÔÇÖs close. On an average black pepper price in Lampung and white pepper in Bangka decreased by 4 and 5% respectively when compared to average price prevailed in January 2017.

An exceptional situation occurred in local market of Sarawak pepper, where local prices of black and white pepper in Kuching stood at the level of MYR 21 and MYR 34 per Kg respectively throughout the month. The price recorded an increase of 7% when compared to the price prevailed in the previous month (January 2017). While for FOB price in Sarawak, it remained stable at the level of US$ 7,780 per Mt for black and US$ 10,860 per Mt for white pepper. In Sri Lanka, a marginal increase of pepper price was also recorded. At the beginning of the month, Sri Lankan pepper price at main growing areas was LKR 1,080 increased to LKR 1,110 per Kg at the monthÔÇÖs close. On an average, price in February increased by 1% when compared to the average price in the previous month.

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 Price 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 respectively.

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

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

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