Monthly Publication

During July 2016, the Price Index of Pepper has not seen any significant changes in black Pepper and only 3 point increase for white Pepper (Table1). The composite price movement of black Pepper has not shown any significant changes to US$ 8,663 per Mt in July from US$ 8,664 per Mt. in June 2016 and for white Pepper it has decreased by -3% from US$ 12,553 per Mt in June 2016 to US$ 12,196 per MT in July 2016 (Table2). The Pepper price has been more or less stable throughout the month without much noticeable volatility in the Pepper producing country.

Table 1. IPC Price Index in US$/MT (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 US$/MT

The market across has shown a more or less similar response except in India, during the month of July. Pepper Prices in Indonesia, Malaysia, Sri Lanka and Vietnam has shown decreasing trend, while pepper prices in India has shown a positive price appreciation. In Lampung, Sarawak and Bangka, the price volatility was minimal throughout the month and pepper stock availability has started improving because of harvesting month. In Sri-Lanka, pepper price has decreased by around -5% during the month of July. The activities in trade would be quite noticeable from the month of August, once Pepper harvesting will be in its peak in Indonesia. This is the harvesting month of Malaysia and Sri-Lanka as well. Though, there is slight average price fall in Malaysia but Sri Lanka black Pepper price has depreciated during the month of July.

August, once Pepper harvesting will be in its peak in Indonesia. This is the harvesting month of Malaysia and Sri-Lanka as well. Though, there is slight average price fall in Malaysia but Sri Lanka black Pepper price has depreciated during the month of July.

In Vietnam Pepper trading has started picking up but volatility in prices has not been noticed, there has been an downward average price movement of around 1% over the month of July 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 advantage of better market accessibility and penetration. In terms of FOB price of black pepper in HCMC stood at the level of US$ 8,450 throughout the month, while for white pepper had almost maintained the price of US$ 11,950 per Mt. When compared to average price during previous month, average FOB prices, has decreased by around -1% for black Pepper and around -1.30% for white Pepper.

In Lampung the market has started mobilizing and activates has improved over the month of July. In view of harvesting season, stock availability in domestic market has improved considerably at farms. Pepper price in Lampung maintained stable situation. Local price of Lampung black stood at the level of around IDR 100,164 per Kg.

Muntok white Pepper price in Bangka prevailed during the month of July was around IDR 137,011 per Kg, which is around -11% less compared to the previous month. Even FOB price of white Pepper has fallen considerable by around -7% over the month of July with 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 around - 2% and FOB price was more or less stable for the month of July by marginally less by -0.68% over the month of July. Local price in Kuching was reported at the level of MYR 27.80 per Kg for black and MYR 49.66 per Kg for white Pepper. In China, white Pepper price has decreased by -2.58%.

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