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During March 2015, the Price Index for black pepper decreased by 1.68 points; while for white pepper increase by 9.55 points (Table 1). The composite price of black pepper decreased marginally by 0.5% to US$ 8,959 per Mt from US$ 9,007 in February 2015, while that of white pepper increased by 3.3% from US$ 12,455 per Mt in February 2014 to US$ 12,862 in March 2015 (Table2).

Table 1. IPC Price Index (Base Year: Average 2006 - 2010)

Note: The price index is calculated based on price developments in 2006-2010

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

In the first quarter, the market concentrated on the development in India and Vietnam, since these two main producing countries harvested their pepper in this period. During the month of March 2015 the market showed a mixed trend. In India and Lampung, black pepper price decreased; while in Vietnam and Sri Lanka the price increased. In Bangka and Vietnam, white pepper price also increased. In Sarawak prices were relatively stable during the month under review.

During March 2015 there was a change in the pepper market development. In India the market showed a declining trend. Pepper harvest in India taking place in early this year has pressed domestic market. Entering the month of March 2015 pepper price in India experienced a significant fall from INR 600 per Kg in February to INR 520 per Kg in the first week of March. Similarly for fob price also decreased significantly. The prices then improved slightly to INR 540 per Kg at the end of the month. Although the price felt, but when compared to price prevailed in other producing countries, the local price remained the highest. It is reported that the out-put realization of recent harvest was good; but supported by strong internal demand the material was easily absorbed by the market.

During March 2015, pepper harvest in Vietnam was on the peak. The output is estimated to be lower than previous year's harvest, but still the largest. Although the harvest has started the market was not very hectic as producers were not interested to sell the material at reduced price. During March, the domestic price of black pepper even increased to VND 175,000 per Kg from VND 155,000 in February 2015. FOB price also increased by US$ 100 per MT to US$ 9,050 at the end of the month. In the case of white pepper, the price increased by VND 27,500 per Kg to VND 275,000 in March 2015, recording an increase of 8%. FOB price of Vietnamese white increased by US$ 700 from US$ 12,250 per MT in February 2015.

In Lampung, the local market remained quiet and prices decreased marginally by IDR 2,000 per Kg to IDR 105,000 in March 2015. In dollar terms however, the decrease up to 3%, due to weakening of Indonesian Rupiah against US Dollar. Trading was very limited. Buyers are anticipating good arrivals of new material some-time in July 2015. Up to February 2015, Lampung has shipped 1,262 Mt of black pepper valued at US$ 12 million as against 898 Mt worth US$ 6.8 million in the last year's corresponding period.

In Bangka, the white price has experienced an increase, particularly in local market. Immediate request to meet export demand were reported to have the main reason for the increase. During March, local price of white pepper in Bangka touched IDR 170,000 per Kg, increased from IDR 142,000 in February 2015.

In Sarawak pepper prices were relatively stable. A marginal increase was recorded in the second half of the month, both in local as well as in FOB price. In Sri Lanka, the average price at pepper growing areas increased to LKR 1,070 per Kg from LKR 970 in February 2015. On an average the price in Sri Lanka increased by 7%. In China, white pepper price increased by 4%.

Black pepper prices prevailing in local markets are shown in Table 3 and FOB prices in Table 4 below.

Table 3: Local Price of Black Pepper in USD per MT

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

White pepper prices prevailing in local markets are shown in Table 5 and FOB prices in Table 6.

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

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