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Index price of black pepper and white pepper in November 2018 recorded a slight increase of 0.61 points and 0.20 points respectively compared to October 2018. However, the index price of black pepper and white pepper in November 2018 declined 17.72 points and 16.2 points compared to November 2017 (Table 1).

Compared to October 2018, the composite price of black pepper increased US$ 45 per MT, and the composite price of white pepper increased US$ 21 per MT. Composite prices of black pepper and white pepper were reported to increase due to a significant increase of Brazil export in November 2018 (Table 2). It was reported that in November alone Brazil exported in total of 12,792 Mt of Pepper which was 30% increase if compared with the previous month.

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

The average price of black pepper at the local level in November in all producing-countries increased compared to the previous month's average price. In dollar terms, the average price of black pepper at the local level in India increased by 2%, in Indonesia it increased by 7%, in Malaysia it increased by 9%, in Viet Nam it increased by 3%, and in Sri Lanka it increased by 7% (Table 3). November also showed the strengthening of local currencies against US Dollar in most origin countries thus contributing to the black pepper price increase in Dollar terms.

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

In November 2018 black pepper price in origin countries showed mixed response in their local currency as opposed to October 2018, black pepper price in India was reported stable at 373/Kg. In the meantime, black pepper price in Indonesia and Viet Nam recorded a slight decrease of 5% and 2%, whilst Malaysia and Sri Lanka recorded minor increase to the rate of RM 8/Kg and LKR 658/Kg respectively.

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

In dollar terms, the FOB price of black pepper for November 2018 in India, Indonesia and Viet Nam experienced an increasing trend as opposed to the previous month. FOB prices of black pepper in India was reported at US$ 5,453 per MT, recording a 2% increase compared to the previous month. Furthermore, FOB prices of black pepper in Indonesia and Viet Nam experienced increase of 4% and 7% respectively (Table 4).

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

The price of white pepper at the local level in Indonesia, Malaysia and Viet Nam showed an increase trend. The Muntok White Pepper price at the farmer level in November was reported at US$ 3,864 per MT, a 2% increase from the previous month of US$ 3,770 per MT. White Pepper prices in Malaysia also reported an increase of 5%, from USD 3,376 per MT last month, to USD 3,537 per MT, recording an increase of USD 161 per MT. Furthermore, the price increase of white pepper at the local level in Viet Nam was reported to be not too significant, USD 9 per MT from the previous month (Table 5).

On its local currency, at the end of November 2018 the prices of white pepper were recorded at IDR 55,000/Kg, RM 15/Kg and VND 87,500/Kg respectively.

The increased price of white pepper at the local level was also followed by increase in FOB prices of white pepper. In November, the FOB price of Muntok White Pepper was US$ 4,536 per MT recording a 2% increase as compared to October. Furthermore, FOB price of white pepper in Viet Nam was reported at US$ 3,996 per MT, recording a 5% increase compared to US$ 3,816 per MT in the previous month (Table 6).

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

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

Indonesia is one of the largest pepper producers in the world. In Indonesia, pepper is widely grown in the provinces of Bangka Belitung Islands, Lampung Province, East Kalimantan Province, South Sulawesi Province, and Southeast Sulawesi Province. Bangka Belitung Province is famous for its production of high quality of white pepper, while Lampung Province is famous for its black pepper.

Pepper production in Indonesia has fluctuated quite significantly in the past 10 years. In the period of 2008 until 2012, production of black and white pepper showed increasing trend following the steady increase of price at that period. In 2008 black and white pepper was traded at the average of USD 2,872 and USD 4,296 per Mt respectively at the farm gate level which then increased significantly by 2012 at the level of USD 5,594 and USD 8,310 per MT respectively. Furthermore, pepper production as well as price in Indonesia peaked in 2015 in which it recorded a total of 80,000 Mt consisted of 49,000 Mt of black pepper and 31,000 of white pepper (Table 7) and were traded at the average of USD 8,142 and USD 12,359 per Mt respectively.

Table 7. Production of Pepper in Indonesia


*Estimate figure

As of September 2018, Indonesia has exported 13,844 Mt of black pepper with a value of US$ 40,853,402. Black pepper exports from Indonesia were dominated by whole black pepper with a quantity of 13,335 Mt or 67% of the total export of black pepper. Furthermore, the export of ground black pepper reached 508 Mt or 33% of the total export of black pepper. Since the beginning of 2018 to September 2018 black pepper exports from Indonesia have showed increasing tendency. Exports of whole black pepper were the highest recorded in September 2018 with quantity of 2,470 Mt and total value of US$ 6,345,791. Furthermore, the highest export of ground black pepper was recorded in August with a quantity of 111 Mt and value of US $ 449,868 (Table 8).

Table 8. Export of Black Pepper from Indonesia in 2018

The total export of white pepper from Indonesia as of September 2018 was recorded at 19,849 Mt with value of US$ 70,576,040. Just like black pepper, Indonesian white pepper was mostly exported in the form of whole white pepper. Until the 9th month of 2018, the export of whole white pepper from Indonesia was recorded at 19,577 Mt with value of US$ 69,098,045 or 99% of the total export of Indonesian white pepper. Furthermore, the export of ground white pepper was recorded at 271 Mt with value of US$ 1,477,995 or 1% of Indonesia's white pepper exports. The highest export of white pepper from Indonesia was recorded in July 2018 with a quantity of 3,132 Mt and at value of US$ 9,667,855 (Table 9).

Table 9. Export of White Pepper from Indonesia in 2018

Based on the data above, that as of September 2018, it was recorded that export of pepper from Indonesia were dominated by whole white pepper, followed by whole black pepper, ground black pepper, and ground white pepper. Pepper exports from Indonesia were highest in rank at August, September and July (Fig. 1 and 2). The total of Indonesian exports was quite high in those months because Indonesia had only experienced a fairly good harvest in several regions so that the pepper stocks were quite sufficient to meet the international market demand.

Figure 1. Export of Pepper from Indonesia in MT in 2018

Figure 2. Export of Pepper from Indonesia in US$ in 2018

Pepper exports from Indonesia are carried out from various ports in Indonesia. As of September 2018, based on the quantity, the largest export of pepper was carried out from the Port in Lampung with a quantity of 9,235 MT which amounted to 27% of Indonesia total pepper export, followed by the Bangka Belitung Islands (7,219 MT), East Java (4,370 MT), West Kalimantan (3,909 MT), DKI Jakarta (3,896 MT), South Sulawesi (2,347 MT), South Sumatra (1,283 MT), and several other ports. While based on value, the largest export value came from Bangka Belitung port with a value of US$ 33.9 million which amounted to 30% of Indonesia total pepper export revenue, followed by Lampung (US$ 32.9 million), DKI Jakarta (US$ 16 million), East Java (US$ 10.4 million), South Sulawesi (US$ 8 million), South Sumatra (US$ 3.4 million), and West Kalimantan (US$ 2.8 million).

Table 10. Export of Pepper in MT based on Port of Origin

Table 11. Export of Pepper in US$ based on Port of Origin