The Hindu Business Line : Global pepper prices up in June

The International Pepper Community (IPC) Pepper Price Index increased significantly in June by 4.6 points for black pepper and 3.6 points for white pepper.

Average f.o.b. prices of black and white pepper at source also rose, with the exception of India, according to IPC sources.

The market for black pepper showed a rising trend in June as supply from Vietnam, the major source, dried up.

Of the estimated production of 90,000 tonnes for 2006, around 66,200 tonnes were shipped during January-June 2006.

Export of black pepper rose to around 9,650 tonnes in June (8,248 tonnes), but was down 30 per cent from 13,821 tonnes in May 2006.

Prices at the local market in HCMC increased from VND (Vietnamese dong) 19,600 a kg at the beginning of the month to VND 22,500 at the month's close.

The f.o.b. prices were up from $1,260 a tonne to $1,440 for 500g/l and $1,330-1,520 for 550g/l.

Compared to last month, average prices in Vietnam increased significantly by nine per cent.

In Sarawak, the year's main pepper harvest is almost over. Farmers, however, are not eager to sell pepper.

They are focusing on rubber, which is giving better returns, and prefer to hold pepper in anticipation of better prices.

Consequently, stocks available in the market are limited and prices have been rising steadily.

At Kuching, local prices moved up from MR 4.69 a kg at the beginning of the month to MR 5.34 at the month's close.

The f.o.b. prices increased by $200 a tonne from $1,750 to $1,950.

Compared to the previous month, local prices increased significantly by 10 per cent and by nine per cent for f.o.b.

At Kochi, the market was relatively quiet during the first three weeks of the month.

Spot prices of un-garbled black were stable at Rs 65 a kg and f.o.b. price was around $1,638 a tonne.

Active trading was reported during the fourth week of the month and the market firmed as it reacted to the bullish news from other origins.

Spot prices of un-garbled black increased to Rs 68 a kg and f.o.b. price of Malabar garbled rose to $1,689 a tonne at the end of the month.

On an average, however, the price of black pepper at Kochi was two per cent less compared to the previous month.

In Lampung, the market was quiet and trading was very limited.

The trend in local price was the same as Malabar, where prices were stable during the first three weeks.

In dollar terms, however, local prices slipped in the second week due to the weakening rupiah against the US dollar. At the month's close, producer prices moved up to IDR 11,000 a kg ($1,177a tonne), while the f.o.b. price was $1,525 a tonne.

White pepper

The market for white pepper has also firmed during the month. In Vietnam, the price rose from $1,960 a tonne f.o.b. in early June to $2,200 at the month's close.

The monthly average prices increased significantly by seven per cent compared to the average price for the previous month.

In June 2006, exports of white pepper from Vietnam stood at around 1,350 tonnes, down from 1,636 tonnes in May 2006, reflecting the limited stock.

Total exports of white pepper during January-June stood at around 7,050 tonnes.

In Sarawak, white pepper prices continued to improve because of tight supply.

At the beginning of the month, the price at local markets was MR 7.57 a kg, increasing to MR 7.92 at the month's close.

The f.o.b. prices increased by $100 a tonne from $2,500 to $2,600 a tonne.

Compared to the previous month, the average price was up by three per cent locally and five per cent f.o.b.

In Bangka, price improved with limited activity, as stocks available at local market have been exhausted.

At beginning of the month, local price was IDR 19,100 a kg, which had risen to IDR 20,250 at the month's close.

The average price of white in Bangka has increased by one per cent locally and five per cent at the f.o.b. level.

In Hainan, prices of white pepper increased by two per cent, both for local and f.o.b.

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