Monthly Publication

During February 2015, the Price Index for black pepper decreased by 5.02 points and for white pepper decreased by 5.25 points (Table 1). The composite price of black pepper decreased by 1.6% to USD 9,021 per Mt from USD 9,166 in January 2015, while that of white pepper decreased by 1.8% from USD 12,679 per Mt in January 2015 to USD 12,455 in February 2015 (Table2).

Table 1. IPC Price Index (Base Year: Average 2006 - 2010)

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

In February 2015 the market was calm and prices at most of the producing countries decreased at different levels. Buyers watched on closely the developments in India and Vietnam, the main suppliers, where pepper harvesting season begun. The out-put of this year harvest in India was reported to be better but in Vietnam was expected to slightly lower than the last year. It was a normal phenomenon during the harvesting season, market pressure and price decrease occurred, particularly in India. As the main supplier during the period under review, market development in India affected market situation in other producing countries.

Although pepper harvest in India has reached the peak, trading activity was not very brisk. Arrival was limited during the month. Only small quantity of pepper were reported arrive in the market a day. Producers were not eager to release material in response of continuous decrease in price during the last two months. In Kochi, India, local price decreased to INR 550 per Kg at the end of February from INR 620 at the beginning of the month and which was INR 685 per Kg at the beginning of the year 2015.

In Vietnam, pepper harvest was in up-swing trend during the month and new material from current harvest has started arrived in the market. Due to continuous decrease in price and anticipation of Lunar New Year holiday, market flow was reported slow-down. Limited trade activities have taken place only to meet commitments made earlier. During 3rd week of the month market was very quiet and most office closed in Vietnam. Players were busy with Lunar New Year celebration. Closing the month the market showed a rising up, trading was more active and prices indicated an increasing trend in Vietnam.

During the first half of the month pepper price in HCMC were relatively stable at around VND 155,000 per Kg for black pepper. Compared to price recorded at the end of January 2015, a marginal decrease was recorded. At the end of the month, when buyers came back to market, black pepper price increased to VND 158,500 per Kg; while for white pepper was reported stable at VND 247,500 per Kg throughout the month. On an average, the price in February decreased by 6% and 3% for black and white pepper, respectively, from the average prices in January 2015.

In Indonesia, the market was also quiet with limited activities. This was due to very tight stock available in the market and decreased price prevailing during the month. In Lampung, the price of black pepper decreased marginally by IDR 3,000 per kg to IDR 104,000 at the monthÔÇÖs close. It was not the case with the situation in Bangka. Price of white pepper at local market increased, because of request of traders to meet immediate commitments. Muntok white pepper increased by IDR 10,000 per Kg to reach at IDR 155,000 per Kg at the monthÔÇÖs close. When compared with 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 remained stable.

In Sarawak, the prices were relatively stable. Local price of Sarawak black stood at around MYR 26.5 per kg and MYR 36.5 for white pepper during the month. In dollar terms however, average prices in February decreased by 4% for black and 2% for white pepper, when compared with the average price in January 2015. Fob price in Sarawak were reported stable throughout the month at the level of USD 10,640 per Mt for Sarawak black and USD 12,660 per Mt for Sarawak white.

In Sri Lanka, pepper price at growing areas increased from LKR.940 per kg at beginning of the month to LKR 997 at the end of the month. Compared to the average price in the previous month, a decrease of 3% was recorded.

Black pepper prices prevailing in local markets are 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