On Monday, October 18, after the market opened, the price for Black Pepper fell from last week’s $5,38 per kg FOB to $5,35 per kg FOB for 500 GL. However, the price remained the same on the following day. Despite the price drop for the overall Indian market for the spice, Kochi reported showing a bullish trend for Black pepper, where the price moved up by $1.34 per quintal for varieties like MG1, Ungarbled, and 500 GL on Monday.
On Tuesday, the spot market prices for India remained stable, but with a lesser overall production of the spice across the globe, experts believe the prices will go up higher in the future for Black Pepper.
Vietnam and Indonesian black peppers experienced an increase in their domestic and export demand in the international market. As a result, the Vietnam black pepper traded between $3.79 and $3.92 per kg on Tuesday. But the overall price for Vietnam’s pepper was mixed with Dak Lak and Dak Nong, recording the price at $3,86 per kg, while Gia Lai province’s crop was down by $0.02 per kg at $3.81 per kg.
Other provinces like Dong Nai, Ba Ria – Vung Tau, and Bihn Phuc provinces recorded the prices of black pepper on Tuesday at $3.70 per kg, $3.93 per kg, and $3.88 per kg, respectively.
It has been reported that the prices of Black Pepper kept improving by $0.13 per kg, which reached $3.59 per kg in the Central Highland provinces of Vietnam. The price was recorded for September, which is the highest in the last four years.
The price of Black pepper is believed to continue to increase worldwide due to lower crop production in Vietnam, Brazil, and Indonesia due to the unfavourable weather the countries faced this year. It is also expected that the annual production of Black pepper will continue to decrease in these countries, given how climate change affects the weather and the growing condition of the crop.
With COVID-19 restrictions being lifted and increased demand for the spice is being reported from the US and the European countries will positively affect the price of Black pepper. The third quarter of the year will witness a significant increase in the export of Black Pepper. Given the decrease in production from the major Black Pepper production countries, India can join the export market. Also, the increase in the export demand is expected to help the pepper market recover from the loss it incurred during the first nine months of 2021. During this time, the export volume was down by 3.3 per cent, which was 213 thousand tons, according to the Ministry of Agriculture and Rural Development.
There will be a continued reduced supply of the pepper from Brazil, Vietnam, and Indonesia, which might benefit Indian black pepper producers, traders, and exporters.
According to International Pepper Organization, the pepper production in Vietnam is down by 40,000 tons this year, thus making the output reach 180,000 MT. Compared to 2020’s output, it is down by 25%, almost 60,000 tons lower.
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