Monthly Publication

Due to short supply situation, the pepper market in November 2013 reacted positively. During the month, the market continued to be firm and prices increased further. The short supply situation was concluded in the last 41st Session of IPC, held in Sarawak, Malaysia between 11th and 13th November 2013. Pepper suppliers from producing countries as well as importing countries attended the Session have examined country papers presented by delegates and discussed in detail about the 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 recorded during this year; while on the other side; increasing consumption/ demand for pepper in line with population growth and the increasing preference/ application by food industry as well as household consumption.

At the end of November 2013 pepper price increased to the highest recorded in the last two years. In Indonesia, local price prevailed in November 2013 was the highest achieved so far. In Lampung, local price of black pepper was IDR 82,500 per kg increased by IDR 7,000 from IDR 75,500 at the beginning of the month. White pepper price in Bangka increased to IDR 109,000 per kg from IDR 101,000 at the beginning of the month. On an average, during November 2013, pepper price in producing countries increased up to 14%.

In November 2013, price index of pepper increased significantly by 14.52 points for black and 9.46 points for white pepper. (Table 1). The composite price of black pepper increased by 5.9% to USD 7,530 per mt from USD 7,111 in October 2013 and for white pepper the increase was 4.3% from USD 9,345 per mt in October 2013 to USD 9,748 in November 2013. Composite price in November 2013 recorded the highest during the last two years. (Table 2).

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

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

In November 2013, the market continued to be firm and prices increased at all origins. Malabar Black has fluctuated with an increasing trend, in the range between INR 453 and 500 per kg in Kochi. On an average, pepper price in India increased significantly by 12%.

In Brazil, the price of Brazilian pepper prevailed in November 2013 has registered an increase by around 9% locally and 7% fob. Pepper harvest in Brazil has completed and output of this year harvest is estimated at the level of 33,000 mt, showing a marginal increase of 1,000 mt from 32,000 mt achieved in 2012. During January - October 2013, export of pepper from Brazil was 24,729 mt, valued at USD 158.8 million. In November 2013, a volume of around 3,000 mt is estimated to have been shipped from Brazil. Up to November total export from Brazil is around 26,100 mt, as against 25.900 mt in the same period last year.

In Lampung, although the prices increased further, the market in November was calm. This was due to limited stock available with the farmers in view of the drastic fall of production this year. Up to November 2013 total export of pepper from Indonesia is estimated at the level of around 40,000 mt (27,000 mt of black and 13,000 mt of white pepper), registering a significant decrease of 32% when compared to export of 59,000 mt achieved in the same period last year. The decrease was mainly due to substantial decrease in export of black pepper, from 46,000 mt in January - November 2012 to 27,000 mt this year.

Pepper price in Vietnam also increased in November 2013. In Ho Chi Minh City, local price of black pepper increased from VND 144,500 per kg to VND 157,500 at the end of the month. In the case of white pepper, it has increased to VND 190,500 per kg from VND 188,500 at the begging of the month. In November, export of pepper from Vietnam is estimated to be around 3-4,000 mt. During January - November 2013 a volume of around 118,000 mt of pepper is estimated to have been exported from Vietnam, as against 110,300 mt achieved during the same period last year.

During November 2013, local price of Sarawak black pepper increased marginally from MYR 17.5 per kg at the beginning of November to MYR 18.3 at the end of the month. Local price of Sarawak white were reported stable at MYR 28 per kg. When compared to average price in October, local price of Sarawak black increased by 3% and 2% for white pepper. Fob price increased by 7% for black and 3% for white pepper. During January - September 2013, Malaysia have exported 8,527 mt of pepper, comprising 6,978 mt of black, 1,524 mt of white and 25 mt of green pepper. During October - November 2013, a volume of 2,500 mt is estimated to have been shipped from Sarawak; hence, total export up to November would be around 11,000 mt, an increase of 13% from 9,700 exported in the same period last year.

In Sri Lanka, pepper price prevailed at growing areas has increased by 14%. During January - August 2013, Sri Lanka has exported 13,070 mt of pepper valued at SL.Rs. 9.7 billion. During the last three months (September - November 2013), Sri Lankan is estimated to have exported around 2,000 mt of pepper; hence total export up to November would be around 15,000 mt, as against 9,700 mt exported 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