Speculative discharge in the domestic market is impacting pepper prices.
This Friday morning, June 22, pepper prices in raw material areas continued to weaken. Black pepper prices in Ba Ria – Vung Tau, the most competitive locality and in Binh Phuoc only decreased by 1,000 VND / kg, down to 55,000 – 56,000 VND / kg while prices in the Central Highlands decreased by 2,000 VND / kg. kg compared with a week earlier, fluctuated between 53,000 and 54,000 VND / kg.
Thus, the price of black pepper decreased continuously since the beginning of the month until now due to the pressure of a new crop being harvested from Sri Lanka, Malaysia and Indonesia, a member of the International Pepper Community (IPC).
However, the preliminary data report of Vietnam Customs showed that pepper exports in the first 15 days of June still reached 10,996 tons of pepper of all kinds, bringing exports in the first five and a half months of 2018 to a total of 120,903 tons, a the figure is significantly higher than the same period last year. At the same time, the data also showed that the average export price decreased only 10 USD / ton compared to the average export price of the previous month, a figure showing the trend of export prices slightly decreased compared to the previous month’s export prices. .
The latest information from the Indian market shows that pepper farmers in Karnataka, the leading pepper producing state of India, have just held an iconic demonstration in front of the office of Manufacturing Co. Ltd. India Products Pvt (IPP), a Jayanti group company, accused the company of billing its import. However, the company denied the grower’s allegations and said that they had complied with the import norms.
Meanwhile, the grower said that the company imported low-priced pepper and declared a price higher than Rs 500 / kg, instead they bought from Karnataka farmers, who were selling for Rs 330 / kg (about 110,000 VND / kg). ).
It is known that IPP is an import / export and value-added processing company, so sometimes they import goods from global customers just to process and re-export according to their requirements. Each year, IPP exports about 2,000 tons of pepper in the country and re-exports about 1,500 tons of pepper after processing.
The price of Indian black pepper in the domestic market of Kerala state decreased by 400 rupees from the previous week, to trading at 30,500 rupees / quintal (equivalent to 4,472 USD / ton) for the type of bucket and 33,600 rupees / quintal equivalent to 4,927 USD / ton) for preliminary treatment.
Meanwhile, the prices of black pepper exported from producing countries were almost unchanged.
According to observers, pepper prices in the domestic market of Vietnam weakened when some stocks had speculative discharges due to the unexpected increase in power, while interest rates began to become a burden, so it was necessary to withdrawal and conversion of investment.
English
According to the Young intellectuals / CafeF
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