Black Pepper Price in International Market in April 2016
The market showed mixed trend throughout April. Pepper prices in India, Sri Lanka and Vietnam increased while pepper prices in other origins were relatively stable. Lampung, Sarawak and Bangka were relatively stable throughout the month.
In April 2016, the price index increased by 1 point for black pepper and by 2 points for white pepper (Table 1). The black pepper price increased by 1% to $ 8,426 per tonne compared to $ 8,362 per tonne in March 2016 and the price of white pepper decreased by 2% from $ 12,377 per tonne to $ 12,136 per tonne in April 2016. ). Pepper prices are mainly affected by Vietnam’s FOB price, the largest exporter of pepper; While FOB prices in India show an uptrend, other producers are relatively stable.
Table 1. IPC Price Index (Calculated based on the average change in pepper price)
| Month | Black Pepper | White Pepper |
| 4/2016 | 113.28 | 117.24 |
| 3/2016 | 112.55 | 119.56 |
| 4/2015 | 120.93 | 125.62 |
Table 2. Average price of black pepper and white pepper (USD / ton)
| Month | Black Pepper | White Pepper | ||||
| 2014 | 2015 | 2016 | 2014 | 2015 | 2016 | |
| 1 | 7,637 | 9,155 | 9,177 | 10,157 | 12,858 | 13,171 |
| 2 | 6,850 | 9,032 | 8,875 | 9,712 | 12,620 | 12,998 |
| 3 | 6,661 | 8,991 | 8,372 | 9,464 | 13,086 | 12,377 |
| 4 | 7,089 | 9,000 | 8.426 | 10,304 | 13,009 | 12.136 |
| 5 | 7,723 | 8,977 | 10,330 | 12,887 | ||
| 6 | 7,911 | 9,287 | 10,413 | 13,403 | ||
| 7 | 9,300 | 9,577 | 11,412 | 13,824 | ||
| 8 | 9,477 | 9,395 | 12,461 | 13,824 | ||
| 9 | 9,740 | 9,446 | 12,806 | 13,558 | ||
| 10 | 9,858 | 9,441 | 13,023 | 13,597 | ||
| 11 | 9,937 | 9,449 | 13,211 | 13,540 | ||
| 12 | 9,718 | 9,486 | 13,574 | 13,337 | ||
The market showed mixed trend throughout April. Pepper prices in India, Sri Lanka and Vietnam increased while pepper prices in other origins were relatively stable. Lampung, Sarawak and Bangka were relatively stable throughout the month.
Harvesting of pepper in India and Vietnam is almost complete. Reports in India say output plummeted compared to the previous crop. The pepper harvested this season has entered the market throughout the month. Due to strong domestic demand and declining production, the Indian pepper market remained unstable and pepper prices showed an upward trend. The average domestic price of Malabar black pepper increased by 8% compared to the average price of the previous month. In Sri Lanka average pepper prices in manufacturing areas also increased slightly by about 1%.
Pepper harvesting in Vietnam is almost completed in April 2016. New crop of current crop has been sold in the market. However, trading activities are not too crowded as foreign traders are expecting prices to be more competitive. According to VPA, this year’s crop output in Vietnam will be higher than previously expected and Vietnam will take advantage of market expansion with better bargaining power. The domestic price of pepper has increased by 3% during the month. For FOB prices, black pepper in HCMC stood at $ 8,050 a tonne throughout the month, while white pepper was almost at $ 11,550 a tonne. Compared to the previous month’s average prices, FOB price of black pepper and white pepper was relatively stable.
Lampung market is relatively quiet due to limited market sources in the domestic market. Only a few rich farmer households hold very limited quantities. It is possible that prices in Lampung will remain stable in Vietnam. The domestic price of Lampung black pepper stood at 102,000 IDR per kilogram.
