Monthly Publication

During April 2013, the Pepper Price Index decreased by 4.85 points for black pepper and marginally 0.67 points for white pepper (Table 1). The composite price of black pepper decreased by 2.1% to USD 6,416 per mt in April from USD 6,556 in March 2013, while that of white pepper decreased slightly by 0.3% from USD 9,068 per mt in March 2013 to USD 9,039 in April 2013 (Table2).

Table 1. IPC Price Index in US$/MT (Base Year: Average 2006 - 2010)

Note: The price index is calculated based on price developments during 2006-2010
Table 2: Composite Price of Black and White Pepper in US$/MT

The market was generally calm and influenced by the development in Vietnam, the largest producers and exporter. In April 2013 market activities were concentrated in this country, since material from current year-s crop in Vietnam has arrived in the market; consequently pressure in the market increased. Since growers were not interested to sell at reduced price, trading was relatively not brisk. Activities taken place in April was mostly to meet commitments made earlier.

It was reported that output of this year harvest in Vietnam would be lower, but export of pepper during the first four months has increased. This was possible in view of high carry over stock from last year crop. During January-April 2013, export of pepper from Vietnam is estimated to be around 50-53,000 mt as against 47,700 mt in the corresponding period of last year. During the last two years, Vietnam produced about 120,000mt annually. Due to less favorable weather condition, out-put of this year harvest is reportedly lower.

The declining trend of the pepper price in Vietnam has influenced prices at other producing countries. During April 2013, producer-s price of black pepper prevailed in HCMC decreased by VND 3,000 per kg from VND 119,500 per kg in early April to VND 116,500 at the end of this month; while fob price for black 550g/l was reported stable at USD 6350 per mt. When compared to average price prevailed in the previous month (March 2013), the prices of black pepper in April decreased by 2%.

In the case of white pepper, the local price of white pepper in Vietnam was reportedly stable at VND 185,500 per kg. When compared to average price in March 2013, the white pepper price was stable locally but fob price decreased marginally by 1%.

In India, the market was quiet, due to limited stocks, as output from recent harvest was not as good as the estimation made earlier, and almost all material has been absorbed in the local market. Limited volume of transaction recorded in Indian Commodity Exchange has also reflected this situation. Although production of pepper decreased this year, the price also decreased, as influenced by the situation in Vietnam.

The decrease in production was reflected by the export performance achieved during the first four months of 2013. During January- April 2013, export of pepper from India decreased to around 7,000 mt from around 9,000 mt in the same period last year. The price in Kochi also decreased marginally from INR 347.00 per kg locally at the beginning of the month to INR 342.00 at the month-s close. On an average, local price decreased marginally by 1% in April when compared to average price in March 2013.

Similar to the situation at other sources, the price of black pepper in Lampung also decreased by IDR 1,500 per kg to IDR 54,000 at the month-s close. The market was reportedly quiet in view of limited stock at domestic market. Material at farm level from last year crop was exhausted. No catch crop was reported this year in March/April, which has also contributed to the situation. New material is only expected to arrive in the market by July 2013. It is reported that production of Lampung black pepper would be lower by around 30% this year. This is possible due to lack of maintenance taken place after good harvest during the last year in addition to aged vines and continuous pest and disease infestation. Rejuvenation of pepper plants taken place in the previous years is expected to be harvested by 2014/15. During the first four months Indonesia exported around 6,500 mt of black pepper as against 7,200 mt in the last year-s corresponding period.

In Bangka, production of white pepper is anticipated to be slightly better this year and the harvest is expected to begin in June/July. White pepper price prevailed in local market was relatively stable. Compared to average price in the previous month, the prices in April was slightly higher. During the first four months, Indonesia is estimated to have shipped 3,000 mt of white pepper, as against 2,800 mt in the same period last year.

Unlike the prices in other sources, local price of black pepper in Brazil increased, but fob price has decreased. In Belem, local price of black pepper increased from BRL 11.2 per kg at the first week of April to BRL 12.00 per kg at the month-s close, while fob price for ASTA quality decreased from USD 6,550 per mt to USD 6,275. During the first three months of this year, Brazil has exported 7,034 mt of pepper valued at USD 44.5 million as against 6.238 mt worth USD 44.2 million in the same period last year. Up to April 2013, total export of Brazil would be around 9,000 mt.

In Sarawak local prices stood at MYR 17 and MYR 26 per kg for black and white pepper respectively during the first three weeks of the month of April. The price then decreased marginally to MYR 16.46 and MYR 25.73 per kg for black and white respectively in the fourth week of April. Fob price of Sarawak black decreased from USD 7,500 per mt to USD 7,310 at the fourth week of April and decreased by USD 100 per mt for Sarawak white to USD 9,600 per mt. During January - April 2013 Malaysia is estimated to have exported around 3,500 mt of pepper as against 3,000 mt in the same period last year.

During April 2013 pepper price at growing areas in Sri Lanka also decreased from LKR 689 per kg at the beginning of the month to LKR 672 at the end of the month. Compared to the average price in the previous month, a marginal decrease of 1% was recorded.

In Hainan white pepper prices opened at USD 9,850 per mt locally and USD 10,055 at the first week of the month. The price decreased to USD 9,775 and USD 9,975 per mt respectively for local and fob at the second week of the month. The price then remained stable until the end of the month.

Overall, the market at most origins was generally quiet with the exception of Vietnam. The price prevailed in April decreased marginally. In view of limited material available in most of the producing countries and decreased production estimate this year, the price is expected to remain high during 2013. Export of pepper up to April was slightly higher from last year export, mainly due to increased export from Vietnam. It is estimated that export for the remaining months of this year would be lower from last year.

Black pepper prices prevailed in local markets are shown in Table 3 and FOB prices in Table 4, while that 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