Monthly Publication

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During August 2016, the Price Index of Pepper has decreased by 3 points for black Pepper and almost double at 6 points for white Pepper (Table1). The composite price movement of black Pepper has decreased to US$ 8,457 per Mt in August from US$ 8,701 per Mt. in July 2016 by -3% and for white Pepper it has decreased by -5% from US$ 12,504 per Mt in July 2016 to US$ 11,626 per MT in August 2016 (Table2). The Pepper price has seen a decreasing trend more or less throughout the month with the prevalent price volatility in the Pepper producing country.

Table1.
IPC Price Index (Base price: 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)

The market across has shown more or less similar response except in India, during the month of August. Pepper Prices in Indonesia, Malaysia, Sri Lanka and Vietnam has shown decreasing trend, while pepper prices in India has shown very stable price in the market. In Lampung, Bangka and Sarawak, the price volatility of -7%,-6% and - 6% respectively has been noticed during the month and pepper stock availability has started improving because of harvesting month. In Sri-Lanka, Pepper price has decreased by around -1.33% marginally during the month of August. The activities in trade were quite noticeable in this month of August; as well Pepper harvesting is in its peak in Indonesia. This is the harvesting month of Malaysia and beginning of harvesting season in Brazil as well.

In Vietnam Pepper trading has started picking up and volatility in prices has been seen, there has been a downward average price movement of around -4% over the month of August in the local market for black Pepper. Output of this year harvest in Vietnam is better than predicted earlier and Vietnam has advantage of better accessibility and coverage of major markets. In terms of FOB price of black pepper in HCMC stood at the level of US$ 7,950 throughout the month, while for white pepper had almost maintained the price of US$ 11,450 per Mt. When compared to average price during previous month, average FOB prices, has decreased by around -5% for black Pepper and around -2% for white Pepper.

In Lampung the market has started mobilizing and activates has improved over the month of August. In view of harvesting season, stock availability in domestic market has improved considerably at farms. Pepper price in Lampung has decreased by around -7% in the local market. Local price of Lampung black stood at the level of around IDR 93,453 per Kg.

Muntok white Pepper price in Bangka prevailed during the month of July was around IDR 128,790 per Kg, which is around -6% less compared to the previous month. Even FOB price of white Pepper has fallen by around -6% over the month of August showing sign of 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 in its last leg 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 around - 6% and FOB price by -5% for the month of August. Local price in Kuching was reported at the level of MYR 26.13 per Kg for black and MYR 44.53 per Kg for white Pepper, which has also decreased by around 10.33% for this month and fob price of white Pepper has depreciated by almost 12% in August. In China, white Pepper price has also decreased by -6% for the month of August.

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 US$ per MT

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