Monthly Publication

During June 2016, the Price Index of Pepper has not seen any significant changes in black Pepper and only 1 point increase for white Pepper (Table1). The composite price movement of black Pepper has not shown any significant changes to US$ 8,757 per Mt in June from US$ 8,755 per Mt. in May 2016 and for white Pepper it has increased by 1 % from US$ 12,392 per Mt in May 2016 to US$ 12,509 in June 2016 (Table2). The Pepper price has been stable throughout the month without much noticeable volatility in the Pepper producing country.

Table 1. IPC Price Index (Base Year: Average 2011 - 2015)

Note: The price index is calculated based on price developments during 2011-2015

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

The market across has shown a mixed response during the month of June. Pepper Prices in Indonesia, Sri Lanka and Vietnam has shown increasing trend, while pepper prices in India and Malaysia has shown negligible price fall. In Lampung, Sarawak and Bangka, the prices were relatively stable throughout the month. Though pepper stock availability has declined but prices are quite stable. The activities in trade would be quite noticeable from the month of July, once Pepper harvesting starts in Indonesia.

In India and Vietnam Pepper harvest had been almost completed. In India, it is reported that the output was significantly lower when compared with the out-put of previous year and comparatively prices are high this year. This is the harvesting month of Malaysia and Sri-Lanka. Though, there is slight average price fall in Malaysia but Sri Lanka black Pepper price has gone up by around 5% over the month of June.

In Vietnam Pepper trading has started picking up and volatility in prices are noticed, there is an upward average price movement of around 3.33% over the month of June in the local market. As per the information from VPA, output of this year harvest in Vietnam is better than predicted earlier and Vietnam has benefit of better market accessibility. In terms of FOB price of black pepper in HCMC stood at the level of US$ 8,506 throughout the month, while for white pepper had almost maintained the price of US$ 12,106 per Mt. When compared to average price during previous month, average FOB prices, has increased by 1% for black Pepper and around 1.52% for white Pepper.

In Lampung the market is still very quiet, in view of limited stock in domestic market stocks available at farms is very less. Only few strong farmers still keep limited stocks. Perhaps because of stabilizing price in Vietnam, Pepper price in Lampung maintained stable situation. Local price of Lampung black stood at the level of around IDR 102,000 per Kg.

Muntok white Pepper price in Bangka prevailed during the month was around IDR 153,600 per Kg. Even FOB price of white Pepper was almost stable without much noticeable volatility.

It is reported that production estimate of Pepper in Indonesia would be lower compared to the previous year. In addition to the number of dead Pepper vines due to very hot weather situation in the last drought season, heavy rains in Lampung and Bangka which has been seen this month has resulted in many Pepper berries falling down. In Kalimantan and Sulawesi island of Indonesia, production of Pepper is also estimated to be less due to erratic rainfall during this season. Weather condition is reported to be not favorable this year.

In Malaysia the harvesting season for Pepper is already running for the month. The effect is quite noticeable in price movements over the month. In Sarawak black Pepper prices were reported lower for local Pepper price by - 1.13% and FOB price was more or less stable for the month of June. Local price in Kuching was reported at the level of MYR 28.36 per Kg for black and MYR 50.42 per Kg for white Pepper. In China, white Pepper price has decreased marginally by -0.82%.

Black Pepper prices prevailed in local markets are shown in table 3 and FOB prices in Table 4, while for white Pepper are in table 5 (local) and FOB prices in Table 6.

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 USD per MT