News & Updates

Indian Black Pepper Price Stays Firm In The Market

by | Sep 24, 2021 | Pepper, Spices

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On Wednesday, 21 September, the Black Pepper 500 GL variety price increased from $5,29 per kg FOB to $5,30 per kg FOB. The price is holding for the crop at the market. However, Indian pepper growers are getting concerned with Sri Lanka increasing its pepper market share. The Revenue Administration at the Port of Tuticorin has made 500 tons of Sri Lankan pepper available in the market. This is their April-May stockpile, and according to Indian traders, it will negatively impact the price of Indian pepper.

This news of Sri Lanka releasing the stockpile comes as a damper for Indian farmers and traders after it experienced an increased export rate by 43% in volume to 11,260 tons during the first six months of 2021. India and all the pepper export countries enjoyed a good run in the export market for the spike due to the container shortage and increased international freight prices.

It is, however, not only India that is suffering from the Black Pepper price in the international market. Even Vietnam, the leading exporter, is being forced to export orders while incurring small losses with each export order.

Despite incurring losses, there has been a decrease in the export volume of pepper as per the Import-Export Department in August 2021. It was the lowest since 2021. The book was down by 35.8% and 33.6% in value compared to July 2021. Compared to August 2020, the volume was down by 2.4%, but the deal has increased by 45.8%.

Vietnam’s Black pepper export reached its highest expert price average in August 2021 at $3,736 per ton since January 2018. However, Indonesia’s pepper export has been down by 1.9% compared to last year. During the first six months of this year, the country exported 20,800 tons f black pepper.

It is expected, the third quarter of 2021 will see improvement and more activity in the international pepper market with an increase in demand from the US and European countries as the COVID-19 restrictions start to relax. Also, due to the reduced supply from Brazil, Vietnam, and Indonesia, the overall international pepper price will stay high.

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