Monthly Publication

During February 2014, the Price Index for black pepper decreased by 22.26 points and for white pepper decreased by 13.63 points (Table 1). The composite price of black pepper decreased by 8.4% to USD 6,999 per mt from USD 7,640 in January 2014, while that of white pepper decreased by 5.7% from USD 10,124 per mt in January 2014 to USD 9,543 in February 2014 (Table2). As the major supplier, Vietnam pepper market was the main factor influencing the significant fall of the price index.

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 February 2014 the market was calm and prices at most of the producing countries decreased at different levels. Buyers were watching more closely the developments of in Vietnam pepper market, the main supplier which is currently in the harvesting season. The out-put of this year harvest in Vietnam is expected to be remains good as last year. Under this situation, market pressure was unavoidable and price decrease had occurred in Vietnam during the month. As the largest exporter, market situation in Vietnam also affected market condition in other producing countries.

In the first week of February, pepper market in Vietnam was quiet due to long holiday season of Lunar New Year. Some activities in the market took place only in the 2nd week of the month, but transactions were still limited. In February, pepper harvest in Vietnam was in up-swing and new material from recent harvest has started arriving the market by February end. Due to this situation, pepper price in Vietnam has drifted lower from VND 133,500 per kg for black at beginning of the month to VND 122,500 at the month-s close; while that for white pepper decreased from VND 184,250 per kg to VND 168,500. When compared to average price in the previous month, the average of local price decreased by 14%, while the fob price decreased by 16% for black and 10% for white pepper.

In India although the harvest has completed, the market showed a slow movement since very small quantity from the new crop of India arrived in the market. Major portion of pepper harvested was absorbed by internal market. It was reported that production of pepper from this year crop in India would be around 45,000 mt, which is significantly lower from 58,000 mt in 2013. During February 2014 pepper prices in India fluctuated at narrow range between INR 500 to INR 520 per kg, with an indication of decreasing trend. On an average however, pepper price in Kochi during February was still higher compared to the average price in January 2014, both in local price as well as fob price.

In Indonesia, the market was also quiet with limited activities. This was due to very tight stock available in the market. In addition to this, decreasing trend of pepper price which is influenced by the situation in Vietnam has contributed to the quiet situation. In Lampung, the price of black pepper decreased by IDR 3,000 per kg to IDR 79,000 at the month-s close. In Bangka, white pepper price has experienced up and down. In the second week of February, local price of white pepper increased to IDR 121,500 per kg from IDR 120,000 at the beginning of the month. The price then decreased to IDR 117,000 at the end of the month. When compared to average price in the previous month, the average price of black pepper in Lampung decreased by 3%, while for white pepper in Bangka, the average price was higher by 2%.

In Brazil also, the market was quiet. Since the price tends to decrease, producers were not interested to release their limited material. Consequently, trading was relatively dull. Average price in Belem reported during the month has decreased by around 3-4%. In Sri Lanka, pepper price at growing areas also decreased from LKR.870 per kg at beginning of the month to LKR 816 at the end of the month. Compared to the average price in the previous month, 3% decreased was recorded.

In Sarawak, the prices were relatively stable. Local price of Sarawak black was at around MYR 19.00 per kg and MYR 28.70 for white pepper. In dollar terms however, average prices in February decreased by 2% for black and 1% for white pepper. Fob price in Sarawak were reported stable at USD 8,250 per mt for Sarawak black and USD 10,350 per mt for Sarawak white.

Black pepper prices prevailed in local markets is 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