Weekly Publications

MARKET REPORT

This week the world mourned after devastating series of bomb blasts struck several Churches and Hotels in Sri Lanka during the Easter Holiday on 21 April 2019. The Easter Sunday attack which had caused death toll of over 250 people as of 26 April, was reported to have influenced the rise of pepper price in Local market India as it recorded a 1% increase when compared with the previous week. The increase was contributed to the slowing down of import from Sri Lanka as the Sri Lankan Government declared emergency. India was reported to have traded their black pepper at an average of USD 4,809 per Mt. Whilst Lampung black pepper was traded stable at an average of USD 2,125 per Mt, Muntok white pepper was reported to have recorded a 3% deficit as compared to the previous week at an average of USD 3,471 per Mt. Malaysia's black and white pepper price was reported at a stable rate as the Malaysian Ringgit staying at an average of 4.13 against US dollar. Black and white pepper Viet Nam continued to be reported flat and stable, averaging at USD 1,893 per Mt and USD 2,854 per Mt respectively. Sri Lanka black pepper was traded at an average of USD 3,402 per Mt.

In the international market, India's FOB price for its black pepper was reported stable at an average of USD 5,096 per Mt. Indonesia continued its trend with Lampung black pepper was reported stable internationally at an average of USD 2,593 per Mt, while Muntok white pepper recorded 3% deficit as compared to the previous week. Malaysia traded its black and white pepper internationally at a stable rate, averaging at USD 2,992 per Mt and USD 4,538 per Mt respectively. FOB Prices of Viet Nam black pepper 500 g/l, 550 g/l and white pepper were reported stable and unchanged as compared to the previous week.

IMPORT OF PEPPER BY THAILAND

Thailand, officially the Kingdom of Thailand and formerly known as Siam, is a country at the centre of the Southeast Asian Indochinese peninsula. Agriculture in Thailand is highly competitive, diversified and specialized with a lucrative international trade. Rice is the country's most important crop, with around 60 percent of Thailand's 13 million farmers growing it. Therefore, Thailand had long been the world's leading exporter of rice. Thailand is also one of pepper producing country known to have cultivated its pepper partially in southern Thailand. However, Thailand's pepper production is unable to meet the domestic consumption which pushes the import of pepper by Thailand to keep increasing in the past three years.

In 2017, Thailand was reported to have imported a total of 3,821 Mt of pepper which 71% of it comprised of whole pepper while 1,125 Mt of it was ground pepper. The average pepper imports by Thailand in 2017 was reported at 318 Mt per month with the highest quantity recorded in June 2017with 576 Mt. The total expenditure of pepper imports by Thailand amounted to 30 Million, recording an average price of the total pepper imported by Thailand at USD 6,695 per Mt for whole pepper and USD 10,686 per Mt for ground pepper.

2018 saw pepper import by Thailand increased by 25% as compared to previous year totalling at 4,764 Mt which comprised of 3,109 Mt of whole pepper and 1,655 Mt of ground pepper, thus, averaging at 397 Mt per month which peaked in May 2018 with 718 Mt. Though increasing in terms of quantity, the pepper imports by Thailand decreased by 12% in terms of value which amounted to USD 26.4 Million. The average price of the total pepper imported by Thailand was reported to be at USD 4,437 per Mt for whole pepper and USD 7,618 per Mt for ground pepper which meant a loss of 34% and 29% respectively.

At the beginning of 2019, pepper import by Thailand as of January continued its increasing trend by recording a 66% as compare with January 2018, totalling 549 Mt which comprised of 464 Mt of whole pepper and 85 Mt of ground pepper. The total expenditure of pepper imports by Thailand as of January 2019 increased by 18% as compared to previous year in the same month, totalling USD2.38 Million.
Most of pepper imported by Thailand both for whole and ground pepper as of January 2019 was reported to come from Viet Nam with 380 Mt. Following Viet Nam, India exported 144 Mt, Philippines 11 Mt and China 8 Mt. Compared to previous year in the same period pepper imported by Thailand was reported to come from Viet Nam with 292 Mt or a spike of 30% recorded, Malaysia with 19 Mt, China with 10 Mt and Philippines with 6 Mt.