(March 23) – Falling prices due to plentiful supply and lack of labor force have contributed to the fall in the price of pepper during the harvest season.
Farmers of Cu Kuin district harvest pepper
The Vietnam Pepper Association (VPA) has estimated that this year's pepper productivity will drop sharply, possibly up to 30% due to unfavorable weather and many pepper plant areas are affected by pests of all kinds that lose all white or harvest. insignificant plan.
Reduced productivity and record low prices not only made gardeners depressed, but also the labor of the collectors appeared to be drowsy and negative when seeing low labor efficiency, so they looked for other jobs to get inspired. more labor-intensive. At this time, in many key growing areas in the Central Highlands, in order to attract and motivate workers, garden owners have adopted a measure of dividing harvested products instead of paying wages. It is quite common that the ration divided between garden owners and peasants picking up to 50/50.
A local trader said that if farmers only sold a small amount of pepper in previous years, it was enough to pay for the picking labor, this year they had to sell two or three times more. Farmers also have no need to store, so the amount of pepper distributed is also sold immediately. Not only that, the supply of pepper in the country has increased sharply, but the price of pepper has dropped, but a significant amount of pepper from Cambodia purchased by exporters in the South through the border also contributes to the price. deep water drop.
However, the aforementioned division phenomenon is only common in pepper gardens with small area, low productivity, less fertilizing, planting according to the movement. As for the pepper gardens with large area, the garden owners have the financial potential, carefully invested, still relatively stable. The Vietnam Pepper Association (VPA) forecasts this year's pepper output will be in the range of 180,000 – 200,000 tons and said that the trading world is not in a hurry to buy pepper like every year, so the supply pressure continues to drive down prices further.
Market reports of the International Pepper Association (IPC) last week showed that most of the price offered for export of black pepper for export in pepper producing countries was relatively stable while white pepper prices fell slightly.
In India, spot prices increased marginally by Rs 100 to Rs 38,000 a quintal (US $ 5,828 / ton) for pint and 40,000 Rs / quintal (US $ 6,134 / ton) for pre-processed pepper. .
While the price of pepper on the NCDEX – Kochi decreased slightly, the April delivery term decreased by Rs 55, to Rs 40,190 / kg and in May fell by Rs 50 to Rs 40,410 / kg (approximately USD 6,164 / ton and USD 6,197). /ton).
According to market sources, Vietnam's pepper exports are still offered at stable prices, while the domestic market has appeared a small speculative buying force, which also contributed to the slowdown.
This morning Friday March 23, the price of raw material for pepper in the Central Highlands still fluctuated between VND 50,000 and VND 52,000 per kg, unchanged from yesterday. The price of pepper at Ba Ria-Vung Tau increased slightly by VND 1,000 to VND 54,000 per kg.
Domestic pepper prices are expected to stabilize through early next week.
* According to a report of the General Department of Vietnam Customs, exports in the first half of March 2018 reached 11,892 tons of pepper of all kinds, with a turnover of US $ 43.75 million, down 12.82% in volume and down 46, 78% in value compared to the same period last year. The average export price of pepper in the period reached US $ 3,679 / ton, down 1.34% compared to the average export price in February 2018.
*Exchange rate: 1 USD = Rs 65,2056.
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Source Young intellectuals / CafeF
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