According to the Financial Times of India, Vietnam's entry into the global pepper trading market has caused this market to change drastically.
The Financial Times of India on December 28 published an article commenting that Vietnam's entry into the global pepper trading market as the world's largest pepper producer has caused this market to change drastically in the recent year.
In the article, Indian economic analyst Rajesh Ravi suggested that factors such as Vietnam emerging as a market for pepper production, importers turned to short-term contracts, and India shifted. from an exporter to import of this commodity, created an irreversible but difficult trend in the pepper trading market.
Previously, India was the world's leading producer and exporter of pepper, with an output of about 80,000-100,000 tons / year.
However, India's pepper production has now decreased to 50,000 tons / year, while it is still the world's largest consumer of this spice at 40,000-50,000 tons / year.
Meanwhile, according to traders' assessment, Vietnam's pepper output currently ranks first in the world with about 110,000-125,000 tons / year, with a harvest of 1.2-1.3 tons. / ha.
In addition, Vietnamese producers have a wise sales strategy so that products do not flood the market, thereby keeping pepper prices from declining and making more profits from exporting this item.
Mr. Ravi estimated that the amount of pepper in sales contracts in 2010 will decrease compared to the normal level due to the impact of the economic downturn.
The financial difficulty makes traders want to sign short-term contracts instead of long-term contracts as before, while maintaining low reserve levels. This increases the instability of the pepper market in 2010.
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