Weekly Publications

MARKET REPORT

This week market showed a rather positive outlook as only Sri Lanka origin reported a decrease. In local market, India black pepper was traded with a 1% increase as opposed to the previous week, averaging at USD 5,002 per Mt. Price of India black pepper in local currency was reported making a slow yet steady increase as it was traded at INR 350 per Kg on Thursday. Indonesia black and white pepper were reported to have recorded an increase by 1% and 2% respectively in this last week before Eid Mubarak Holiday, averaging at USD 2,085 per Mt for black pepper and USD 3,510 per Mt for white pepper. The increase in Indonesia pepper was highly contributed to the strengthening of Indonesian Rupiah against US Dollars. Malaysian black and white pepper this week were traded stable and recorded insignificant movement. Viet Nam black pepper was reported with a slight 1% increase while Viet Nam white pepper remained stable. Sri Lanka black pepper became the only origin to have recorded a slight deficit by 1% as compared with the previous week at an average of USD 3,283 per Mt as the local price experienced deficit to LKR 578.77 per Kg.

In the international market the increasing trend continued. India FOB price was also reported with a 1% increase as opposed to the previous week. Indonesia black and white pepper was traded with a 1% and 2% increase respectively in the international market, averaging at USD 2,545 per Mt for black pepper and USD 4,141 per Mt for white pepper. Malaysia's FOB prices for black and white pepper were reported at a stable rate. As market in Viet Nam reported tight and offers drying up, FOB prices of Viet Nam black 500 g/l, 550 g/l and white pepper recorded spike by 4%, 4% and 3% respectively as compared with the previous week.

IMPORT OF PEPPER BY RUSSIA,

Russia, officially the Russian Federation, is a transcontinental country in Eastern Europe and North Asia. Russia is by a considerable margin the largest country in the world by area, covering more than one-eighth of the earth's inhabited land area and the ninth most populous, with about 146.79 million people as of 2019. Russia's economy ranks as the twelfth largest by nominal GDP. In every year, Russia imports more than 8,000 Mt of pepper from pepper producing countries, pepper is used in all kind of Russian preparation, especially in soups and vodka. Therefore, it is hard to imagine a Russian meal without pepper. Many Russians aware that the health benefit of pepper include relief from a host of illness such as coughs, cold, respiratory disorders, indigestion, impotency, muscular strains and dental disease.

In 2017, Russia reported to have imported a total of 8,204 Mt of pepper which 93% of it comprised of whole pepper while 595 Mt of it ground pepper. The average pepper import by Russia in 2017 was reported at 684 Mt per month with the highest quantity recorded in June with 1,035 Mt. The total expenditure of pepper imports by Russia amounted to USD 36.5 Million, recording an average price of the total pepper imported by Russia at USD 4,271 per Mt for whole pepper and USD 6,687 per Mt for ground pepper.

2018 saw pepper import by Russia slightly decreased by 2% as compared to previous year totalling at 8,047 Mt which comprised of 7,353 Mt of whole pepper and 695 Mt of ground pepper. The average pepper import by Russia was reported at 671 Mt per month which peaked in May 2018 with 1,048 Mt. In accordance with decreasing in terms of quantity, the pepper imports by Russia also decreased by 28% in terms of value which amounted to USD 26.3 Million. The average prices of the total pepper imported by Russia was reported to be at USD 3,051 per Mt for whole pepper and USD 5,548 per Mt for ground pepper which meant a loss a 29% and 17% respectively.

At the beginning of 2019, pepper import by Russia as of February 2019 showed an increasing trend by recording a spike of 39% as compared with the same period in 2018, totalling 878 Mt which comprised of 763 Mt of whole pepper and 115 Mt of ground pepper. The total expenditure of pepper imports by Russia as of February 2019 decreased by 6% as compared to previous year in the same period, totalling USD 2.6 Million.
Most of pepper imported by Russia both whole and ground as of February 2019 was reported to come from Viet Nam with 441 Mt (an increase of 8% compared with the same period in 2018), Brazil with 168 Mt (an increase of 83%), India with 47 Mt (an increase of 9%), Poland with 38 Mt (an increase of 56%) and Indonesia with 36 Mt (a decrease of 185%). The decrease of import from Indonesia was the result of Indonesia's low stock.