| Pepper prices today April 4: Domestic prices decreased slightly, the highest was VND 74,000 / kg. (Source: The Kitchen) |
Update world pepper prices
World pepper prices were unchanged today from the day before. Recorded at 12:15 am on April 4 (Vietnam time), world pepper prices for spot on the online floor NCDEX Kochi (India) traded at Rs 38,636.35 / quintal (lowest) and Rs 39,300 / quintal ( tallest).
The cross rate of Vietnam dong against the Indian Rupee (INR) on April 2 was applied by the State Bank to calculate the export tax and import tax at 314.52 VND / INR.
Domestic pepper prices
Today’s pepper prices in the domestic market were traded at VND 70,000 – 74,000 / kg in localities.
Specifically, today’s pepper price in Dong Nai was the lowest in the market at 70,000 VND / kg.
Today’s pepper prices in Gia Lai provinces (VND 71,000 / kg); Dak Nong, Dak Lak (72,500 VND / kg); Binh Phuoc (73,000 VND / kg) and Ba Ria – Vung Tau were at the highest threshold of 74,000 VND / kg.
Some information said that the sharp increase in pepper prices recently was due to the high world demand and the decline in global pepper production, including Vietnam.
However, the pepper harvest in the country is expected to end at the end of April, but so far there are conflicting opinions on pepper production.
The Vietnam Pepper Association (VPA) believes that pepper output in 2021 may decrease by 25-30% compared to 2020.
However, according to recent data from the General Statistics Office, pepper output harvested in the first quarter of 2021 reached 200,000 tons, down only 0.5% compared to the same period in 2020.
Meanwhile, Vietnam’s pepper export in the first quarter of 2021 reached 60,000 tons, worth $ 174 million, down 25% in volume and 1.4% in value over the same period in 2020.
Despite the decrease in volume, pepper is the commodity with the strongest increase in export prices among the exported agricultural products, up 31.5% compared to the first quarter of 2020, reaching an average of 2,879 USD / ton.
Before the unusual movement of the pepper market, in mid-March, the Vietnam Pepper Association (VPA) made a recommendation although pepper production in Vietnam and other countries is expected to decrease due to the impact. because of climate change, but the decrease is not commensurate with the rate of price increase.
Overall supply is still higher than demand. The world’s current demand for pepper is about 500,000 tons, while the supply in 2021 plus inventories of the previous years is about 600,000 tons.
Therefore, the rapid increase in prices in the country is due to speculation. This contains risks for both pepper farmers and exporters because of fluctuations.
From the above data, it can be seen that the recent rise in pepper prices is not really sustainable, potentially risky.
Especially during the time when Vietnam and other pepper producing countries are in harvest. Therefore, pepper business units should be cautious about this development.
Although demand from the pepper market is improving positively after the Covid-19 pandemic, with supply forecast to continue to exceed demand in 2021 and pepper from Vietnam’s new harvest. In the future, pepper prices are expected to cool down again in the second quarter of 2021.
World demand is currently at 510,000 tons of pepper / year and an average annual increase of only 2-3%, while global pepper output increases by 8-10%.
Global pepper production will reach more than 660,000 tons by 2020, is forecast to increase to 1 million tons by 2050, and world demand for pepper also increases, but not in balance with the supply.
Therefore, VPA also recommends that pepper prices may remain volatile for many more years.
According to BQT – Update 7h00
