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Price index of pepper in October 2018 experienced a varied increase. The price index for black pepper increased by 1.34 points, while white pepper experienced an increase of 0.68 points compared to September 2018 (Table 1). The composite price of black pepper followed the increasing trend by 3.65% to US$ 2,833 per MT opposed to US$ 2,733 per MT in the previous month. Though it recorded a slightly lower margin the composite price for white pepper also increased by 1.73% from US$ 4,097 per MT in September to US$ 4,168 per MT.

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

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

The price of black pepper at the farm level showed mixed response. Prices in Sri Lanka were reported to be relatively stable, only insignificant increase. Price in Indonesia and Viet Nam were reported to increase by 16% and 10% respectively. At the Indonesian farmer level, the average price of black pepper in September was IDR 37,600 per kg, while in October the average price increased to IDR 38,500 per kg. Furthermore, the prices of black pepper at the farm level in India and Malaysia were reported to decline by 3% and 4% respectively (Table 3). The price of black pepper in India declined from RS 381 per kg in September to RS 373 per kg in October. Same trend was recorded in Malaysia which experienced a decrease in the price of black pepper at the local level from RM 7.8 per kg in September to RM 7.5 per kg in October.

Table 3. Local Prices of Black Pepper in US$ per MT

Table 4. FOB Prices of Black Pepper in US$ per MT

FOB prices also experienced the same trend with the local prices. The average FOB price in India in October was reported USD 5,351 per MT, recording a 3% decline compared to the average price in September valued at USD 5,534 per MT. Furthermore, FOB prices in Indonesia and Viet Nam reported increased by 9% and 6% respectively (Table 4).

Table 5. Local Prices of White Pepper in US$ per MT

The price of white pepper at the farm level had also shown a mixed response this month (Table 5). The average price of Muntok White Pepper at the farm level in October was reported to be USD 3,770 per MT, recording an increase of 6% compared to September. At the local level, the average price of Muntok White Pepper in September was reported at IDR 55,000 per kg, while in October the average price increased to IDR 60,000 per kg. A 6% increase was also reported in the price of white pepper in Viet Nam. In September, the Viet Nam's average price of white pepper at the farm level was USD 3,536 per MT, and in October it was USD 3,790 per MT. On the other hand, the average price of white pepper at the farm level in Malaysia decreased from RM 14.5 per kg in September to RM 14 per kg in October.

Table 6. FOB Prices of White Pepper in US$ per MT

FOB prices of Muntok White was reported to have experienced price increases (Table 6). In September the price of Muntok White Pepper was USD 4,250 per MT, while in October it was reported to have increased to USD 4,467, recording an increase of 5%. Furthermore, in Viet Nam, FOB Price for white pepper was also reported to increase albeit marginally.

Viet Nam and Brazil Export as of September 2018

As of September 2018, Viet Nam was reported to have exported around 200,000 MT of pepper which recorded an increase of roughly 6% as opposed to the same period last year where it only recorded 187,000 MT (Table 7). Though Viet Nam is still the top exporters of pepper, Viet Nam exporters currently were reported to experience shortage of stock due to farmers unwillingness to let go of products. On the other hand, with decent amount of stock Brazil continued to offer pepper at lower price thus it could be expected that Brazil export number would increase in November.

Table 7. First 9 months shipment data in KMT

Exports to Myanmar in 2018 experienced a significant increase compared to the previous year in the same period. In 2018, Viet Nam and Brazil alone had exported 2,970 MT of pepper, recording an increase of 903% compared to 2017 with a quantity of 296 MT. Furthermore, Nepal also recorded an increase of 234% in import of pepper from Viet Nam and Brazil as of September 2018. Reasoning behind the significant increases, according to unofficial source was that pepper that went in Myanmar and Nepal would then be re-routed illegally to India.

Viet Nam and Brazil also export more pepper to Poland, Ukraine Morocco, and China. Demand by Poland, Morocco, Ukraine, and China increased by 91%, 56%, 46%, and 31% respectively from the previous year in the same period. Furthermore, Viet Nam and Brazil also exported 43,423 MT of pepper to the USA in 2018, 27% higher than in 2017 with a quantity of 34,205 MT. The increase recorded in these countries was due to their role as re-exporters of pepper and also the increase in domestic consumption.

The increase in Viet Nam and Brazil's export numbers to the Netherlands and France also recorded to increase albeit slightly. In 2018, Netherlands imports 20% more pepper than in 2017 during the same period. France also imports 19% more as opposed to 2017 for the same period. The increase in imports of the two countries from Viet Nam and Brazil was due to the increasing role of the two countries as re-exporters.

Even though Viet Nam and Brazil exports increased in several countries, in some other countries exports from both countries declined. Exports to South Korea in 2018 decreased by 49% compared to exports in 2017 in the same period. The decline in exports to South Korea was reported due to the less role the play as re-exporter of pepper this year with a decrease of 14% from 79 Mt in 2017 to 68 Mt. As of September 2018, Turkey imported 41% less compared to 2017 in the same period. The decline in pepper imports by Turkey was due to the inflation problems faced by the country.

Furthermore, Viet Nam and Brazil's exports to Spain were also reported a decline. As of the 9th month of 2018, Viet Nam and Brazil exported pepper 3,252 MT, recording a decline of 44% compared to last year in the same period. The decline in exports to Spain was attributed to Netherlands higher export to Spain as compared to the previous years.

Table 8. Global Coverage Report from Viet Nam and Brazil in MT