According to the Department of Import and Export, prices of pepper in the near future are hard to recover because of the abundant supply. According to the World Pepper Association, the global supply of pepper is still about 60,000 – 70,000 tons higher than demand.
Abundant supply
The Import and Export Department recently forecasted that global pepper prices will hardly recover in the short term due to abundant supplies.
Indian pepper output in 2020 is forecast to reach about 61,000 – 62,000 tons, 30% higher than in 2019.
According to the World Pepper Association (IPC), global pepper production in 2019 decreased after many years of sharp increase, 74,000 tons lower than in 2018. The main reason is that the planted area is shrinking and the weather is not. Advantages in Vietnam affect productivity.
Even so, the global supply of pepper is still about 60,000 – 70,000 tons higher than demand. Pepper inventories are likely to decline sharply from 21,856 tons in 2019 to 10,856 tons in 2020. The reason is that Vietnam has exported quite a large amount of pepper in 2019.
February pepper market was quiet
In February, the global pepper market traded quietly. Kerala's state pepper crop in 2020 officially started in January, but the yield and quality are low due to weather.
February and March, the state of Kerala and Karmataka state of India in the main harvest, output can reach 200-300 tons / week.
Prices of black and white pepper exports tended to stabilize or decrease in some markets. Specifically, at the port of Kuching in Malaysia, prices of black and white pepper exports have been stable since mid-June 2019 to date, trading at US $ 3,685 / ton and US $ 5,275 / ton.
In Brazil, from February 4, export price of black pepper decreased by 11.1% to US $ 2,000 / ton and stabilized by the end of February. Previously, the price had maintained a stable level of US $ 2,250 / ton since from October 7, 2019.
At Lampung ASTA port of Indonesia, the export price of black pepper decreased by 5.8% compared to January 31, to US $ 2,091 / ton. Meanwhile, at the port of Muntok, the export price of white pepper decreased by 4% compared to January 31, to US $ 3,596 / ton.
In India, export price of pepper decreased by 0.1% compared to January 31, to USD 4,636 / ton.
In Vietnam, prices of black and white pepper for export decreased compared to January 31. On 29/2, the price of black pepper grade 500g / l and 550g / l of export decreased respectively 11.3% and 9.5% compared to January 31, to USD 2,045 / ton and USD 2,145 / ton.
Export price of white pepper decreased by 8.9% compared to 1/31, to USD 3,145 / ton.
