Pepper exporters are stepping up their bids for low-quality grades, mainly those with a weight of 500 Gr or less, while high-quality grades are rarely offered.
Last week’s trading results showed that the world price of pepper futures on the NCDEX in Kochi-India had turned down after setting a record. For the whole week, April futures dropped by Rs 2,645, or 6%, to Rs 41,465 per quintal, equivalent to $8,102 per tonne and May term dropped Rs 2,705, or 6.01%, to Rs 42,300/quintal, equivalent to USD 8,266/ton, in the closing session of the week early on Saturday afternoon, March 24, (1 USD = Rs 51,1758).
The spot price for MG1 specially selected pepper only decreased by Rs 436, or 1.06%, to Rs 40,889/quintal, equivalent to USD 7,990/ton, a slight decrease. The price drop was also due to the strong selling by speculators after pushing up Indian pepper prices to new historical records. In general, the price of pepper in India is higher than the price of pepper from other origins by more than $1,000/ton.
During the same period, the price of pepper on the SMX exchange in Singapore for April term fell $67, or 1.01%, to $6,698 per ton, and May futures rose $110, or 1.64%, to 6,821 USD/ton. The price gap between the two world futures exchanges has been shortened, but it is still more than 1,400 USD/ton, which is a huge difference.
Analysts of the world pepper market all said that the current domestic price level in India is too high, unreal, and needs adjustment. Meanwhile, pepper traders in Karnataka, the southern state of India, continue to import low-volume Vietnamese pepper to supplement domestic consumption, which is severely lacking because of this year’s crop failure.
Statistics of the Customs industry in 2011 show that India is in the top 5 pepper import markets of our country, along with the US, Germany, the Netherlands and the United Arab Emirates. In particular, India is also a major producer and exporter of pepper in the world and the export price of Indian pepper is also very competitive. Therefore, pepper traders of this country often save domestically produced pepper for export demand at high prices and import cheap pepper from Vietnam for domestic consumption.
Vietnamese black pepper exports 500 Gr/l-FAQ at $6,300-6,350/ton and 550 Gr/l-FAQ at $6,650-6,700/ton (FOB), an average decrease of $250. While white pepper grade DW 630 Gr/l was offered at $9,500-9,550/ton (FOB), down $350.
Special Indian pepper MG1 is exported to Europe for $8,550/ton and to the US for $8,850/ton (C&F), down $100.
This morning, March 26, the price of black pepper in a bucket in Ba Ria-Vung Tau dropped to 126,000 VND/kg, in Binh Phuoc to 122,000 VND/kg, at Dak Lak-Dak Nong and Chu Se, Gia Lai also still priced at 120,000. VND/kg, the average domestic price decreased by 3,000-5,000 VND/kg in the past 1 week.
According to preliminary statistics of the Customs, exports in the first half of March reached 8,363 tons of pepper of all kinds with a turnover of 57.7 million USD. Accumulated from the beginning of the year to March 15, 2012, 20,374 tons of pepper of all kinds were exported with a turnover of US$ 139.6 million, although it only increased by 21.85% in volume but increased sharply by 73.14 % in price compared to the previous year. with the same period last year. The average export price reached 6,899 USD/ton, standing at a high level.
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