Weekly Publications

MARKET REPORT

Market this week showed mixed response. In local market, Malabar black pepper was reported with an increase by 1% as compare to the previous week averaging at USD 4,892 per Mt. Indonesia black and white pepper were reported with a 1% deficit as opposed to the previous week with an average of USD 1,918 per Mt for black pepper and USD 3,446 per Mt for white pepper. As Indonesian black and white pepper in local currency were traded unchanged as opposed to the previous, the decrease in Indonesia pepper was highly contributed to the weakening of Indonesian Rupiah against US Dollar. Malaysian black pepper was reported to be traded with 1% deficit as compared to the previous week, averaging at USD 2,369 per Mt. Whilst, Malaysian white pepper was reported stable averaging at USD 3,909 per Mt. Viet Nam black pepper was reported to be traded with 1% deficit as opposed to the previous week, averaging at USD 1,876 per Mt while Viet Nam white pepper was reported unchanged. Sri Lanka black pepper was reported with a slight increase of 1% as compared to the previous week, averaging at USD 2,538 per Mt.

In international market, FOB price of India black pepper was reported with an increase by 1% as compared to the previous week averaging at USD 5,182 per Mt. Indonesia black and white pepper were reported with a deficit of 1% as opposed to the previous week with an average of USD 2,358 per Mt for black pepper and USD 4,074 per Mt for white pepper. Malaysia black and white pepper were reported stable and unchanged. Furthermore, Viet Nam black pepper 500 g/l, 550 g/l and Viet Nam white pepper were reported stable averaging at USD 2,265 per Mt, USD 2,330 per Mt and USD 3,415 per Mt respectively.

US market was reported stable and unchanged with Muntok spot price being reported at USD 5,072 per Mt

EXPORT OF PEPPER BY INDIA

India is one of the top producers of Black Pepper in the world. Year 2018 saw India become 4th biggest pepper producer in the world after Viet Nam, Brazil and Indonesia. As majority of the pepper product in India does not leave the country, India is considered as one of the highest consumers of pepper among pepper producing countries just behind China. However, India also exports pepper to various countries in the world.

In 2017, India was reported to have exported a total of 18,269 Mt of pepper from which 45% or 8,130 Mt of it comprised of whole pepper and 55% or 10,138 Mt of it ground pepper. India on average exported a total of 1,522 Mt per month in 2017. The total revenue of India export in 2017 was reported to be as high as USD 134.8 Million, thus, recording an average price of the total pepper exported by India at USD 8,528 per Mt for whole pepper and USD 6,458 per Mt for ground pepper.

Year 2018 saw a decreasing trend in term of quantity of pepper exported by India. India was reported to have recorded a total of 16,726 Mt which comprised of 8,707 Mt of whole pepper and 8,019 of ground pepper. Thus, recording 8% decrease as compared to the same period in 2017. The average export of pepper by India was reported to be at 1,394 Mt per month. In accordance with decreasing in terms of quantity, India's revenue from pepper export was reported to have decline by 33% to a total of USD 90.0 Million which recorded an average price of the total pepper exported by India at USD 5,868 per Mt for whole pepper and USD 4,850 per Mt for ground pepper or decreased by 31% and 25% respectively as compared with 2017.

As of April 2019, India was reported to have exported a total of 6,386 Mt which comprised of 2,931 Mt of whole pepper and 3,455 Mt of ground pepper. Thus, recording an increase of 14% as compared to the same period in 2018. By the end of April 2019, the total revenue of pepper export by India was reported to have reached USD 29.6 Million, recording a loss 13% when compared to the same period in 2018. The average price of the total pepper export by India as of April was reported at USD 5,669 per Mt for whole pepper and USD 3,743 Per Mt for ground pepper.

Furthermore, as of April 2019, India's top 5 country destinations for its pepper were reported to be United States of America with 2,335 Mt (an increase of 58% as compared with the same period in 2018), Spain with 480 Mt (an increase of 224%), United Kingdom with 413 Mt (a decrease of 40%), Japan with 302 Mt (an increase of 73%) and Sweden with 294 Mt (a decrease of 13%). The decrease of export to United Kingdom was the result of United Kingdom directly imported pepper from the other pepper producing country such as Viet Nam (an increase by 411 Mt as compared to the same period in 2018). United Kingdom's preference towards importing from Viet Nam origins as opposed to India could be contributed to the fact that Viet Nam offer more competitive price. Whilst, the increase of export to Spain was the result of Spain to shift import pepper from Germany to origins countries such as India (a decrease by 106 Mt as compared to the same period in 2018) which exported 210 M in the same period in 2018