Weekly Publications

MARKET REPORT

Market continued to show mixed response with significant movement only reported in some origins. On farm gate level, decrease in price was reported in India, Indonesia, Sri Lanka and Viet Nam while others were reported steady and China remained to have recorded an increase. With domestic of black pepper thinning, India market was dominated by the cheap smuggled products coming via borders of Nepal, Myanmar and Bangladesh (according to thehindubusinessline.com), thus making black pepper in India traded at an average of US$ 4,842 which was a decrease of 5% compared to last week. Sri Lanka and Viet Nam traded their black pepper at 1% lower as opposed to the previous week. Black pepper in Indonesia and Malaysia was traded steady just like the previous week. As for white pepper in farm gate level, Muntok and Viet Nam recorded a decrease of 2% and 1% respectively as opposed to the second week of January which could be contributed to the weakening of the local currency towards US dollar. Malaysian white pepper was traded on the same level as the previous week. This week saw China prevailed as compared to other origins with trading white pepper at 2% higher as opposed to the previous week in US$ 4,870.

Slightly similar with the farm gate price, FOB price for black pepper in India also recorded a decrease by 4% and was traded at an average of US$ 5,123. Whilst in other origins FOB price of black pepper were traded steady and experienced no movement. FOB price for white pepper in Muntok also reported to have decreased by 2% recording an average price of US$ 4,335 while in Malaysia and Viet Nam it remained steady. China again became the only origins to have recorded an increase on the FOB price for white pepper by recording an increase of 2% as opposed with the previous week.

Market in the US was reported flat as U.S federal agencies have been shut down for three full weeks, which still continues till present date, due to budget disagreement. Due to of this shut down, though shipments were cleared by the Customs and Border Protection they were held by the FDA and USDA holds which weren't being released in timely manners.

EXPORT OF PEPPER OLEORESIN FROM INDIA:

Pepper oleoresin is a concentrate obtained through the extraction process of black pepper using organic solvents such as acetone, ethanol, ethylene dichloride, ethyl acetate, and other organic solvents. Pepper oleoresin consists of a mixture of pepper oil, resin, and alkaloid compounds that play a role in the level of spiciness of oleoresin. As a pepper concentrate, one kilogram of oleoresin can replace the use of 10 kilograms of pepper as a flavor in the food processing industry. Oleoresin is used as a flavor in the food processing industry such as canning meat, sauce, making soft drinks, pharmaceutical raw materials, the cosmetics and perfume industry, sugar and bread industry, and other industries.

The use of oleoresin is preferred for the food industry because it has the original taste and aroma. Other advantages, oleoresin is more efficient in transportation and storage, its use can be standardized, free from microbial contamination, long shelf life, and does not affect the appearance and volume of the product. Although it has many advantages, oleoresin comes in a very thick form so it is sticky and difficult to weigh properly. It is also difficult to be dispersed on dry mixing. The flavor stability is not good at long storage and solvent residue is still contained. Oleoresin flavoring characters can change during storage or processing which may cause off-flavor. Therefore, oleresin requires special handling during storage to avoid the effects of heat, light, oxygen and humidity. One of the many technologies developed to minimize oloresin weakness is the microencapsulation technology.

As the top producers of pepper oleoresin, in 2016 India exported 1,116,698 Kg of oleoresin with a value of US$ 59.7 million. The export price of pepper oleoresin from India in 2016 was reported to be the highest in September which reached US$ 59 per Kg, while the lowest price was reported in February with a value of US$ 49 per Kg. The average export price of pepper oleoresin from India in 2016 was reported to be US$ 53 per Kg. In 2017, India exported 1,321,211 Kg of oleoresin with a value of US$ 64 million, recording an increase of 18% in quantity and 7% in value. The export price of pepper oleoresin from India in 2017 was reported to be highest in January at US$ 59 per Kg, and the lowest in December at US$ 41 per Kg, while the average export price of pepper oleoresin from India in 2017 was reported to reach US$ 49 per Kg. Based on these data, the average export price of pepper oleoresin from India in 2017 decreased 8% from the previous year.

As of September 2018, India had exported 1,006,027 Kg pepper oleoresin with a value of US $ 41.7 million. Compared to the previous year in the same period, exports of pepper oleoresin from India in 2018 experienced a 6% increase in quantity but experienced an 18% decrease in value. The average export price of pepper oleoresin from India in 2018 (as of September) was reported to be highest in May at US$ 47 per Kg, the lowest in September at US$ 34 per Kg, and the average export price of pepper oleoresin from India for the first 9 months of 2018 was reported to at US$ 40 per Kg. Based on these data, the average export price of pepper oleoresin in this period recorded a decline of 25% and 18% as compared to the same period in 2016 and 2017.

As of the 9th month of 2018, the 10 major countries to export pepper oleoresin from India are USA with a quantity of 276,979 Kg, followed by Germany (128,982 Kg), France (74,764 Kg), China (66,264 Kg), Netherlands (55,175 Kg), Thailand (48,941 Kg), United Kingdom (47,963 Kg), Philippines (36,935 Kg), Canada (34,411 Kg), and Russian Federation (31,147 Kg).