Monthly Publication

During July 2012, the Pepper Price Index was decreased by 3.04 points for black pepper and 5.93 points for white pepper from 229.48 and 220.09 respectively in June 2012 (Table 1). The composite price of black pepper decreased marginally by 1.3% to USD 6,526 per MT from USD 6,614 in June 2012, while that of white pepper decreased by 2.7% from USD 9,380 per MT in June 2012 to USD 9,127 in July 2012 (Table2).

Black Pepper

The market showed a mixed response during July 2012. Average price of black pepper in Lampung, Sarawak and Brazil decreased, while in India the price increased. In Vietnam and Sri Lanka the price also increased marginally particularly in local market. Pepper harvest in Lampung and Sarawak as well as expected harvest in Brazil to begin in September has likely affected market situation.

In Lampung pepper harvest was taking place in June end till August. Major harvest took place during the 2nd half of July, and the out-put of this year crop is estimated to be better compared to last year. However, around 10-15% of the pepper plants yielded pepper last year has died already. Hence, the increase in production is not giving any significant impact in the global supply. During July 2012, pepper price in Lampung has fallen in July 2012 by around 6% in view of material from new crop has arrived in the market. The situation was considered a normal phenomenon when the new crop comes to the market. In addition of the above, Ramadhan festival occurred during July/August was also contributing for price decrease.

In July 2012, Malaysian pepper has also entered the market in a small way. This has also contributed in influencing market direction. During July 2012, black pepper price in Sarawak decreased by 7% locally and 4% in fob. Up to July 2012, Malaysia have exported around 5,275 mt of pepper, comprising 4,256 mt of black, 1,001 mt of white and 19 mt of green pepper. Compared to exports in the corresponding period of last year, the export has decrease by around 30%. This reflected that supply from Malaysia is currently limited.

In Brazil, black pepper price decreased by 3% both in local as well as fob price. Up to July 2012, Brazil have exported 13,102 mt of pepper valued at USD 91.5 million. When compared to exports in the same period last year, there was a decrease of 7% in quantity, but increase in value by 31%. The decrease in export reflected the available stock in Brazil was limited.

Unlikely with the above, In India the market was active in July and pepper prices increased due to buying support. At the beginning of the month, investors and processors were actively buying pepper. During the month local price of Malabar black at Kochi increased steadily from INR 38,400 per quintal at the beginning of the month to INR 41,300 per quintal at the month's close. In dollar terms, average price of Malabar black increased by 5%.

Due to reported rains in the pepper growing areas in Sri Lanka during the flowering period, the second harvest is expected to be lower compared to last year. This has impacted on the supply and hence price has increased during the month. Some of the buyers having short position started sourcing pepper from Sri Lanka, which has also pushed the price up in Sri Lanka. In July 2012 pepper price at growing areas in Sri Lanka increased to LKR 697 per kg at the month's close from LKR 634 at the last month's close.

In Vietnam pepper prices have fluctuated locally in July 2012. During the first half of the month, local price increased by VND 1,000 per kg to VND 124,500 in the mid of the month. The price then decrease to VND 120,500 at the month's close. On an average however, local price of Vietnamese pepper increased marginally by 1%. In the case of fob price, it was relatively stable at around USD 6,450 per mt for black 550G/L. Up to July 2012, Vietnam is estimated to have exported 73,100 mt of pepper valued at USD 503 million, as against 82,800 mt worth USD 433 million in the same period last year, registering a decrease in quantity by 12%, but increase in value by 11%.

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

White Pepper

The market for white pepper decreased during the month. In Bangka and Sarawak, white pepper prices in local market decreased by 4 and 3% respectively. In the case of fob also showed a similar trend.

In Vietnam and Hainan, price decrease also recorded at lower scale

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