Vietnam Pepper Association (VPA) said: If the export price from July onwards is over 7,000 USD / ton, it will pull the domestic pepper price to over 140,000 dong / kg.
Through a survey of many farmers and businesses, the Vietnam Pepper Association (VPA) said that if the export price from July onwards reached over 7,000 USD / ton, pulling the domestic pepper price to over 140,000 VND / kg, then the export volume in 2012 could reach 110,000-115,000 tons, total turnover reached 770-780 million USD.
Conversely, if the above price is not reached, the majority of farmers continue to stock, businesses have to accept losses.
Currently, the storage of pepper when harvested and then sold moderately, waiting for higher prices for high efficiency, creating a quite popular mentality among farmers, collection agents and suppliers.
From this practice, VPA has warned import and export businesses pepper It is necessary to consider when advancing domestic trading capital and negotiating to sign import-export contracts in the coming time, in order to ensure profits and minimize risks.
At present, the domestic price of black pepper in key pepper provinces in the Central Highlands and South East ranges from 123,000 to 125,000 VND / kg, 18,000-20,000 VND / kg higher than the same period in 2011. The domestic price market In recent years, the market has struggled, trading activities are very quiet and some businesses have to buy Indonesian pepper to re-export.
In order to ensure sustainable production development and export business with higher and higher efficiency, VPA has proposed to the Prime Minister and functional departments a number of solutions. Specifically, it is recommended that banks lend money to farmers for a period of 1 year, reasonable interest rates for people to grow pepper for reproduction and have conditions to temporarily store pepper at harvest.
At the same time, the State Bank will lend pepper to enterprises trading and exporting pepper at low interest rates or equal to 0% for 3-6 months to buy temporarily stored pepper in the harvest season (1st quarter every year) in order to create sources of raw materials for deep processing, create value of goods to increase prices, and proactively align in export contracts.
In addition, the tendency of farmers to grow better-off pepper, having conditions to store pepper, to dominate the domestic market has created domestic and world pepper prices more and more closely, making business enterprises export. Pepper is difficult to find profits. Therefore, VPA believes that the exemption, elimination of value-added tax in pepper export for businesses is now essential.
Follow Lien Phuong (VNA)
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