Monthly Publication

During April 2016, the Price Index of Pepper increased by around 1 point for black Pepper and decreased by 2 points for white Pepper (Table1). The composite price of black Pepper increased by around 1% to US$ 8,426 per Mt from US$ 8,372 per Mt. in March 2016 and for white Pepper decreased by 2 % from US$ 12,377 per Mt in March 2016 to US$ 12,136 in April 2016 (Table2). The Pepper price was mainly influenced by the decrease of FOB price in Vietnam, the largest Pepper exporting country; while FOB prices in India saw increase in Pepper price while other producing countries were relatively stable.

Table 1. IPC Price Index (Base Year: 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 has shown a mixed response during the month of April. Pepper Prices in India, Sri Lanka and Vietnam has increased, while in pepper prices are stable at other producing countries. In Lampung, Sarawak and Bangka, the prices were relatively stable throughout the month.

In India and Vietnam Pepper harvest has been almost completed. In India, it is reported that the output was significantly lower when compared with the out-put of previous year. Pepper produce from this year harvest has already entered the market during the month. Supported by huge internal demand and less production this year, Pepper market in India remained volatile and Pepper price has shown an increasing trend. On an average, local price of Malabar black Pepper has increased by 8% from previous monthÔÇÖs average. In Sri Lanka, average price of Pepper at growing areas has also increased to the extent of 1% marginally.

In April 2016 Pepper harvest in Vietnam has almost completed. New material from the initial harvest has been sold in the market. Trading however is not that brisk, as overseas buyers are expecting to get more competitive price. As per the information from VPA, output of this year harvest in Vietnam is better than predicted earlier and Vietnam has benefit of expanding market base by better bargaining power . Local price of Vietnamese Pepper has increased by around 3% during the month. In terms of FOB price of black pepper in HCMC stood at the level of US$ 8,050 throughout the month, while for white pepper had has almost maintained the price of US$ 11,550 per Mt. When compared to average price during previous month, average FOB prices, has been stable for black and white Pepper.

In Lampung the market is still very quiet, in view of limited stock in domestic market stocks available at farms has almost very less. Only few strong farmers still keep limited stocks. Perhaps because of decreasing 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 at around IDR 160,000 per Kg. Even FOB price of white Pepper was quite stable and not much volatility noticed.

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, 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 Sarawak black Pepper prices were reported slightly marginally higher for local price by 2% and FOB price were quiet stable throughout the month. Local price in Kuching was reported at the level of MYR 30 per Kg for black and MYR 51 per Kg for white Pepper. In China, white Pepper price increased marginally by 2%.

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 USD per MT

Table 4: FOB Prices of Black Pepper in USD per MT

Table 5: Local Prices of White Pepper in USD per MT

Table 6: FOB Price of White Pepper in USD per MT