Weekly Publications

MARKET REPORT

As Muslims around the world celebrate Ramadhan amidst the global pandemic of Corona Virus, market showed a mixed response. In local market, Malabar black pepper was reported with 1% deficit when compared to the previous week, averaging at USD 5,166 per Mt. The decrease of India's pepper could be contributed to the weakening of Indian Rupee against the US Dollar (INR 75.05 @ USD 1), recording a 2% depreciation. Indonesia black and white pepper were reported with a 1% and 4% deficit respectively when compared to the previous week, averaging at USD 3,144 per Mt for black pepper and USD 6,015 per Mt for white pepper. The decrease of Indonesian price could be contributed to the weakening of Indonesian Rupiah against the USD Dollar (IDR 14,630 @USD 1), recording a 1% depreciation. It was also reported that the current situation of pepper prices in Bangka Province of Indonesia was more influenced by speculators which possessed more stock as compared to farmers. Malaysia black and white pepper were reported with an increase of 5% and 3% respectively as compared to the previous week, averaging at USD 2,979 per Mt for black pepper and USD 4,387 per Mt for white pepper. Viet Nam farm gate price of black and white pepper were reported with 2% and 3% deficit respectively as compared to the previous week, averaging at USD 2,926 per Mt for black pepper and USD 4,506 per Mt for white pepper. Furthermore, China white pepper was reported stable and unchanged.

International market also showed a mixed response as India black pepper was reported with the same 1% deficit when compared to the previous week, averaging at USD 5,433 per Mt. Indonesia black and white pepper were reported with 1% and 4% deficit respectively when compared to the previous week, averaging at USD 3,751 per Mt for black pepper and USD 6,933 per Mt for white pepper. Malaysia black and white pepper were reported stable and unchanged. Contrary with its local price, Viet Nam black pepper 500 g/l, 550 g/l and Viet Nam white pepper were reported with an increase of 1% respectively as opposed to the previous week, averaging at USD 3,635 per Mt, USD 3,675 per Mt and USD 5,370 per Mt respectively. China white pepper was reported stable and unchanged.

EXPORT OF PEPPER BY SINGAPORE

Singapore, officially the Republic of Singapore, is an island city-state in Southeast Asia. Singapore actively imports pepper from various pepper producing countries for domestic consumption or for re-export.

In 2018, Singapore was reported to have imported a total of 5,781 Mt which 87% of it comprised of whole pepper. In the following year, Singapore's import of pepper decreased by 52%, totaling at 2,753 Mt. In 2020, Singapore was reported to have imported a total of 3,408 Mt of which 1,731 Mt went for re-export purposes. The ratio of Singapore's import and export during 2018 - 2020 were 1.2:1, 1.4:1 and 2:1 respectively. The top five countries of origins for Singapore's pepper in 2020 were reported to be Viet Nam with 1,157 Mt (contributed to 34% of the total pepper imported by Singapore in 2020), Indonesia with 910 Mt (27%), Malaysia with 901 Mt (26%), Brazil with 152 Mt (4%) and Madagascar with 93 Mt (3%).

In 2018, Singapore was reported to have exported a total of 4,807 Mt of pepper which 84% or 4,024 Mt of it comprised of whole pepper and 16% or 783 Mt of it ground pepper. Singapore on average exported a total of 401 Mt per month in 2018 which peaked in May with 699 Mt. The total revenue of Singapore's export of pepper in 2018 was reported to be as high as USD 21.9 Million. Thus, recording an average price of the total pepper exported by Singapore at USD 3,698 per Mt for whole pepper and USD 9,052 per Mt for ground pepper.

Year 2019 saw a decrease in term of quantity of pepper exported by Singapore. Singapore was reported to have exported a total of 2,022 Mt which 97% or 1,963 Mt of it comprised of whole pepper and 3% or 59 Mt of it ground pepper, recording a decrease of 58% when compared to 2018. The reason for the significant drop of export by Singapore in 2019 could be contributed to the big drop in economic activity in the second quarter of the year. The wealthy city state was being hurt by the US-China trade war and was heading for its weakest annual growth since 2009. The average export of pepper by Singapore in 2019 was reported to be 169 Mt per month which peaked in May with 287 Mt. In accordance with decreasing in term of quantity, Singapore's revenue from pepper export was reported with a decrease of 71% as compared to the previous year to a total of USD 6.3 Million. Thus, recording an average price of the total pepper exported by Singapore at USD 3,093 per Mt for whole pepper and USD 4,976 per Mt for ground pepper or a decrease of 16% and 45% respectively as compared to 2018.

In 2020, Singapore was reported to have exported pepper totaling 1,731 Mt which 92% or 1,597 Mt of it comprised of whole pepper and 8% or 134 Mt of it ground pepper. Thus, recording a decrease of 14% when compared to 2019. In 2020, the total revenue of pepper export by Singapore was reported to have reached USD 5.3 Million, recording a decrease of 15% as compared to 2019. The average price of the total pepper exported by Singapore in 2020 was reported to be USD 3,046 per Mt for whole pepper and USD 3,935 per Mt for ground pepper or a decrease of 2% and 21% respectively as compared to 2019.

Pepper from Singapore is traded worldwide with most of them being Asian countries. In 2020, Singapore's top 5 country destinations for its pepper were reported to be Taiwan with 236 Mt (a decrease of 0.2% as compared to 2019), India with 183 Mt (a decrease of 66%), Viet Nam with 182 Mt (an increase of 130 Mt), United States of America with 154 Mt (a decrease of 28%) and South Africa with 135 Mt (an increase of 89%). The decrease of Singapore's pepper export to India was the result of India shifted to import pepper from origin country such as Brazil (an increase of 21% or 756 Mt as compared to 2019).

https://edition.cnn.com/2019/08/13/economy/singapore-gdp-recession-trade-war/index.html
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