The fact that the Ministry of Commerce of India has applied the minimum import price (MIP) for pepper imported from countries outside of the South Asia Free Trade Agreement (SAFTA) met with the opposition of most Indian Spices Businessmen and economists.
They said that this will make India's pepper price uncompetitive globally because pepper importing countries will source from cheaper producing countries such as Vietnam, Indonesia … and most recently. Brazil, a South American pepper producer, is increasing its export volume by 91%, from 31,100 tons in 2016 to 59,500 tons in 2017, with the lowest price offered in the market. world pepper market today.
It is known that Brazil has withdrawn from the International Pepper Organization (IPC) and they themselves do not bid any coalition to keep prices stable. Their advantage is that the land is vast and very open so the investment cost for pepper is extremely low. Vietnam, India and some pepper growing countries cannot be compared to them. According to a well-known Spices Business in the world, they are the direct competitors directly with Vietnam pepper in the near future.
Indian spice traders also believe that consumers of pepper in the world often put pepper in the spice basket. The loss of competition from Indian pepper not only made them more vulnerable but also caused the loss of MIP “unjust benefit”. Customers who do not buy pepper also will not buy other spices. However, this is a matter that is still controversial.
Yesterday, Tuesday, March 27, pepper prices on the NCDEX – Kochi increased for the third session. April delivery futures increased by Rs 345 to Rs 40,545 a quintal and May delivery also increased to Rs 345 to Rs 40,770 a quintal (equivalent to $ 6,257 / ton and $ 6,292 / ton).
Meanwhile, spot prices also increased by Rs 200 to Rs 38,500 a quintal (US $ 5,942 per ton) for pail and 40,500 Rs per quintal (US $ 6,250 per ton) for the selected type, an increase of 115. USD / ton compared to the previous week.
In the domestic market, pepper prices in the past week have increased by VND 2,000 / kg due to the impact of world pepper prices. It is worth noting that while farmers are in full harvest, the amount of garden houses sold to cover costs has also plummeted as it is said to have bottomed out on Wednesday March 21.
However, the pressure of new pepper supply remains. If farmers simultaneously sold strongly, it was inevitable that pepper prices would fall again. It is expected that if the price turns down, it is afraid that this time the price will drop further.
According to the report of Vietnam's Agriculture and Rural Development sector, the export volume of pepper in March 2018 was estimated at 24 thousand tons, with a value of US $ 88 million, bringing the export volume of pepper in the first 3 months of 2018 to be estimated at 54 thousand tons and 203 USD million, up 5.5% in volume but down 37.3% in value over the same period in 2017. Average export price of pepper in the first 2 months of 2018 reached US $ 3,822 / ton, down 44.7% compared to the same period in 2017. with the same period in 2017.
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