After Black Pepper 500GL increased from $5,37 per kg FOB to $5,38 per kg FOB last Thursday, October 7, the price has been holding steady. On October 9, the market in Kochi closed on a regular note for Black Pepper, while the prices for Brazil and Vietnam’s crop remained steady.
As the market opened on Monday, October 11, the trend remained steady for the varieties, where the best MG1 was traded for $569.27 per 100 kg.
While the Indian Black Pepper varieties remained steady on Monday, there was a significant increase in Vietnam and Brazil’s Black Pepper prices. Vietnam’s 500GL was higher by 2.28% per ton when it traded at $4390 per ton. Brazil quoted its 500 GL at $4490 per ton, 2.23 per cent higher, while ASTA was sold at 2.38 per cent higher at $4200 per ton.
It has been noted that there has been a steady increase in Vietnam’s Black pepper prices since last week across all its provinces. The Central Highland’s Black Pepper price had increased and has reached an all-time high since last four years in September when it increased by $0.13 per kg.
The price for Black pepper is expected to increase or hold steady across the world because the significant pepper-producing countries like Vietnam, Brazil, and Indonesia’s production has dropped due to climate change.
Reduction in Black Pepper production in these countries has positively impacted India’s Black Pepper market. According to the report published by the Ministry of Agriculture and Rural Development, India’s Black Pepper export has increased during the last six months by 43 per cent volume, which is about 11,260 tons. Compared to the previous year during the same period, the export increase is up by 57%. The pickup in the export for the spice comes as a relief to the Indian farmers and traders of Black Pepper after it witnessed a slump in the export quantity by 3.3percent during the first months of the year.
According to experts, India will benefit from the increased demand in the international Black Pepper market as the US and the EU are relaxing the import restrictions due to the pandemic. However, amidst the reduced crop supply from Vietnam, Brazil, and Indonesia, the prices are expected to remain or go higher in the coming months.
According to the International Pepper Organization (IPC), the Black Pepper harvest will be down by 25% compared to 2020’s crop, about 40,000 tons. However, this year the yield is expected to reach 180,000 MT in Vietnam.