The world lacks pepper, Vietnam benefits

The latest information shows that this year's world pepper market will lack serious supply and Vietnam's pepper farmers will benefit, the current domestic price of pepper has reached 95,000 VND / kg.

At the moment, pepper price is 95,000 dong / kg but according to Vietnam Pepper Association (VPA), pepper price is still likely to increase to 110,000 – 120,000 dong / kg in the near future.

Pepper prices may rise to more than $ 6,000 per ton

Mr. Tran Duc Tung, Chief of VPA's office said so on March 30. According to Mr. Tung, the price of pepper in the world increased largely due to the effect of the law of supply and demand because pepper production in pepper growing countries decreased but demand of the world increased.

“In the first 6 months of the year, only Vietnam and India were the two countries that harvested pepper and became the two main suppliers to the world market. This year, India's pepper production decreased, so enterprises processing and distributing pepper are only able to buy Vietnamese pepper. Therefore, right from the beginning of this year, the price of domestic pepper increased from 70,000 to 95,000 VND / kg, ”Mr. Tung said.

Another reason, according to Mr. Tung, is different from the years before the pepper harvest, pepper growers often sell massively but in the last 2 years, people only sold when they needed money and reserve to sell in the months. year-end with higher prices. Therefore, pepper prices are always high.

According to VPA, this year's pepper season will end at the end of April, but global demand will start to rise from the second quarter. Therefore, it is likely that the world pepper price will be at US $ 6,000 per tonne. black and US $ 8,000 / ton white pepper (white pepper).

Lack of supply, Vietnamese farmers benefit

Among the largest pepper growing countries in the world, only Vietnam's output this year is considered stable, while other countries such as India, Indonesia, China and Brazil plummeted. Immediately after having this information, in addition to the fact that some international companies in Dubai have announced that they have purchased large quantities of Vietnamese pepper, the world pepper prices have risen sharply again.

On the Indian market, spot prices increased by 300 rupees to Rs 23,000 per 100 kg (buckets) and Rs 23,800 (MG1), while in May and June futures prices increased by Rs 487 and Rs 463, respectively. at 24,950 rupees per 100 kg and 25,255 rupees per 100 kg.

In the international market, Indian pepper price increased to US $ 5,725-5,750 / ton (C&F). Forecast of Indian pepper price will continue to increase in the coming days.

Prices of pepper from other origins also increased, contrary to the expectations of customers who have been waiting for the past few days in the hope of falling prices.

Asta pepper price on March 29 was at $ 5,600 / ton, compared to $ 5,500 / ton a day earlier.

The pepper harvest in India is about to end but India now has no major role in the world pepper market, because they consume almost all of their own output.

From July onwards, the world pepper market will depend more on supply from Brazil and Indonesia. If supply from these two sources is poor, the price could rise to 6,500 dollars / ton in the second half of this year.

Supply and demand

World pepper production this year is forecast to reach 257,000 tons, compared to 290,700 last year. The remaining reserve is about 40,000 tons, bringing the total supply to about 297,000 tons. Meanwhile, total consumption this year will increase by about 5% compared to 320,000 tons in 2010, ie a shortage of 33,000 – 35,000 tons.

Demand for pepper is increasing globally, especially in the US, Western Asia and Europe. Domestic demand in countries like India is also on the rise.