In recent weeks, the domestic pepper price of Malaysia has dropped to the lowest level since the beginning of the year due to selling pressure from Indonesian farmers.
In the Kuching market, yesterday, July 27, the price of KG1 white pepper dropped to RM23,600/ton and RM14,570/ton of black pepper, erasing all price gains since the beginning of the year.
About four months ago, pepper prices rose to a record high when white pepper rose to RM27,000/ton and black pepper rose to RM17,800/ton. But now the price has dropped below the last price of 2011 of RM24,850/ton for white pepper and RM15,600/ton for black pepper.
In 2010 and 2011, due to tight global supply, Malaysia’s pepper price increased strongly, totaling RM9,500/ton for white pepper and RM6,250/ton for black pepper.
The head of the Malaysian Pepper Board (MPB) Mr. Grunsin Ayom said that the current domestic price of pepper has been lowered due to selling pressure from Indonesia’s new season of pepper being introduced to the market.
Reply to newspaper StarBizWeek, “Indonesian farmers are selling their new crop in preparation for next month’s Hari Raya festival,” he said.
According to the forecast of the International Pepper Community (IPC), Indonesia’s pepper production in 2012 is expected to increase from 33,000 tons last year to 41,000 tons, of which it is estimated that there will be 25,000 tons of black pepper and 16,000 tons of white pepper. .
Mr. Grunsin added that the country’s traders had expected domestic prices to recover after Hari Raya, so global pepper prices did not fall much. “We are monitoring the market situation in Indonesia. The country’s domestic pepper prices will be higher than they are now when 2012 ends,” he said.
According to the report, Malaysia’s supply will improve when Sarawak’s new crop of pepper enters the market.
The state of Sarawak, which contributes 99% of Malaysia’s exports, has harvested between 65% and 70% of the new pepper crop. Recent adverse weather changes have prevented new crops from being harvested.
“The delay in the harvest of the new season makes Malaysia’s pepper exports in the first six months estimated at only 4,500 tonnes compared to 6,193 tonnes in the same period last year.” Mr. Grunsin added.
Giatieu.com
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