Monthly Publication

Witnessing real short supply situation, the pepper market in November 2014 reacted positively. During the month, the market continued to firm and price increased further. The short supply situation was concluded in the last 42nd Session of IPC, held in HCM City, Vietnam on 27-29th October 2014. Pepper players from producing countries as well as importing countries attending the Session have examined country papers reported by delegates and discussed in detailed situation of supply and demand including production, export, import domestic consumption and carry over stock. From the discussion, it was concluded that pepper supply from producing countries is very limited due to lower production realized during this year from 379,000 Mt in 2013 to 336,000 Mt this year.

In November 2014, price index of pepper increased by 4.31 points for black and 6.97 points for white pepper. (Table 1). The composite price of black pepper increased by 1.3% to US$ 9,938 per Mt from US$ 9,814 in October 2014 and for white pepper the increase was 2.3% from US$ 12,930 per Mt in October 2014 to US$ 13,278 in November 2014. Composite price in November 2014 recorded the highest achieved so far. (Table 2).

Table1. IPC Price Index (Base price: Average 2006 - 2010)

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

In November 2014, the market continued to firm. Malabar Black has fluctuated in the range between INR 685 - 703 per kg in Kochi. On an average, pepper price in India increased significantly by 3%.

In Brazil, the market is reported to have dull in view of the political situation of presidential elections. With the dollar rate extremely volatile ranging some-times up to 3% a day, it is very difficult to operate future shipments. Fob price was around US$ 9,000 (SATA) per MT at the end of the month; but buyers were very silent expecting price downs mainly due to reported better crops in India. During January - October 2014, export of pepper from Brazil was 24,431 Mt, valued at US$ 205.3 million. In November 2014, a volume of around 4,000 Mt is estimated to have been shipped from Brazil. Up to November total export from Brazil would be around 28,400 Mt, which is more or less same as the level exported in the same period last year.

In Lampung, the market in November was calm as material from this year harvest has exhausted. Pepper price at domestic market increased marginally from IDR 106,000 per Kg at the beginning of November to IDR 109,000 at the end of the month. In Bangka, trading was also limited and price increased to IDR 155,000 pr Kg from IDR 147,000 at the beginning of the month. Up to November 2013 total export of pepper from Indonesia is estimated at the level of around 33,000 Mt (20,000 Mt of black and 13,000 Mt of white pepper), registering a significant decrease of 25% when compared to export of 43,800 Mt achieved in the same period last year. The decrease was mainly due to substantial decrease in production and export of black pepper this year.

Pepper price in Vietnam increased in November 2014. In Ho Chi Minh City, local price of black pepper increased from VND 187,500 per kg to VND 196,500 at the end of the month. In the case of white pepper, it has increased to VND 270,500 per Kg from VND 249,000 at the beginning of the month. In November 2014, export of pepper from Vietnam is around 4,000 Mt. During January - November 2014 a volume of around 141,000 mt of pepper is estimated to have been exported from Vietnam, as against 130,000 mt achieved during the same period last year.

In Sarawak, pepper prices were relatively stable in November, both black and white pepper. During January - September 2014, Malaysia have shipped 10,314 Mt of pepper, comprising 8,408 mt of black, 1,878 mt of white and 28 mt of green pepper. During October - November 2013, a volume of around 2,300 mt is estimated to have been shipped from Sarawak; hence, total export up to November would be around 12,600 mt, an increase of 15% from 10,950 exported in the same period last year.

In Sri Lanka, pepper price prevailed at growing areas decreased marginally by 1% from SL.Rs 1,174 per Kg at the beginning of November to SL.Rs 1,159 at the end of the month. It is estimated that export of pepper from Sri Lanka decreased significantly, due to drastic fall of production this year. During January - July 2014, Sri Lanka has exported 5,000 mt of pepper as against 9,200 Mt in January - July 2013. During August - November 2014 Sri Lanka is estimated to have shipped pepper at around 6,000 Mt; hence total export of pepper from Sri Lanka during January - November 2014 would be around 11,000 Mt as against 20,300 Mt in the same period last year. Sri Lankan pepper is mostly exported to India.

Black pepper prices prevailed in the local markets are shown in Table 3 and FOB prices in Table 4; while for white pepper are shown in table 5 and 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