Mumbai, February 22 (CommoditiesControl): Domestic pepper prices in major markets experienced a decline of Rs 400 per quintal due to subdued demand. Conversely, prices in Vietnam are on the rise, driven by expectations of a decrease in output. Indian domestic prices have witnessed a decrease in the range of Rs 7,000-7,200 per quintal since reaching their peak last month.
In Cochin, garbled pepper prices were reported at Rs 54,800 per quintal, while ungarbled pepper prices stood at Rs 52,800. In Karnataka, pepper prices ranged from Rs 52,700 to Rs 54,800 per quintal. The domestic market is currently facing the challenge of increased output coupled with lower export inquiries, exerting downward pressure on prices.
Indian pepper production is anticipated to reach 70,000 tons, reflecting a rise of 3,000 tons compared to the previous season. Additionally, export and import data for December have been released, with exports registering a 5% increase at 1,440 MT. Imports surged by 20.4% YoY at 3,132 MT, driven by robust imports from Vietnam and Brazil. Imports from Vietnam recorded a significant 728% YoY increase.
However, the expected decrease in production in Vietnam is contributing to the strength of domestic pepper prices. Vietnam's production in 2024 is projected to be 170,000 tons, reflecting a 10.5% YoY decline. This decline has led to a substantial price increase in Vietnam's major markets, with prices rising by VND 1,000 per kg to range between VND 87,000 and VND 90,000.
The reduction in acreage and lower yields have resulted in decreased production. Although harvesting has recently commenced, it is more dispersed than last year, contributing to the price rise in local markets.
Global FOB prices are expected to remain stable, except in Brazil, where prices have witnessed a sharp increase. The surge in Brazilian origin prices is attributed to strong export demand from the EU, the United States, and India.
Domestic Quotes (INR/Qtl):
- Kochi: Ungarbled - 52,800, Garbled - 54,800
- Kushalnagar: 53,000-54,500
- Chikamagalur: 52,700-54,800
FOB Quotes - Black Pepper:
- Brazil ASTA (USD/MT): 4,350
- Vietnam 500gl (USD/MT): 3,900
- Vietnam 550gl (USD/MT): 4,000
- Indonesia ASTA (USD/MT): 3,913
- Malaysia (Ringgit/MT): 4,900
(By CommoditiesControl Bureau; +91-9820130172)
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