The Hindu Business Line : Pepper price index on upward path

According to IPC sources, pepper price index increased by 3.81 points for black and 2.33 points for white in February. Composite price of black pepper increased by 2.3 per cent to $2,573 a tonne while that of white pepper increased by 1.5 per cent to $3,641 a tonne. In February, the market for black pepper was mixed and relatively quiet in most origins such as Vietnam, Malaysia, Indonesia and China due to Lunar New Year holidays, particularly during second and third week. Only India showed some activities.

Black pepper

In India, the market was slower at the month beginning. But prices however, remained relatively firm. They subsequently eased slightly which attracted traders to enter the market. The active trading in India offset the quiet market of other origins. Cochin market eased towards the fourth week of February. During the month, prices of ungarbled black pepper fluctuated between Rs 11,400-11,900 a quintal. The average price was 8 per cent higher than that of January last.

In Vietnam, black pepper market remained active with some orders being placed in the first week of the month. The market subsequently turned quiet due to the long Lunar New Year holiday. Some activities took place only in the fourth week, but transactions were still limited.

During the first three weeks, the f.o.b. (free on board) prices were unchanged at $2,290 a tonne for 500g/l and $2,360 a tonne for 550g/l. During the fourth week, the price moved up to $2,350/tonne and $2,430/tonne for black 500g/l and 550g/l, respectively. On average, the price increased by 4 per cent when compared to the average price in January 2007.

Similarly, in Sarawak some activities occurred at the beginning of the month, which later turned quiet in anticipation of Lunar New Year. Prices, however, continued to be stronger from RM 8,100 a tonne at the beginning of February to RM 8,500 a tonne at the month's close. F.o.b. price was reported to have increased from $3,260 a tonne in the first week to $3,300 a tonne in the remaining weeks. On average there was a price increase of 8 per cent for local and 6 per cent for f.o.b. when compared to the previous month.

In Lampung, the market was quiet with limited activities due to tight stock. New arrivals are expected some time in July. Local prices were relatively stable at around IDR 20,000 to IDR 21,000 a kg or a marginal increase of 2 per cent when compared to January 2007.

In Sri Lanka, the average price at pepper growing areas was SLRs 246 a kg, from SLRs 247 a kg in the previous weeks. In dollar terms, however, there was a price fall of $60 a tonne due to reported depreciation of Sri Lankan rupees against US dollar in the fourth week of the month. The average local price of black pepper in Sri Lanka increased by 11 per cent from January 2007.

White Pepper

The market for white pepper was quiet and mixed during February 2007. Indonesia has limited supply of white pepper and the expected lower crop this year from Bangka will only be available some time in July. In Vietnam, white pepper from new crop is not yet available in the market. In Sarawak and Hainan, materials for white pepper were also limited.

In Bangka, local price declined from around IDR 30,250 a kg to IDR 28,000 a kg at the month's close. The situation was partly due to unscheduled release of stocks by farmers who needed funds in addition to limited overseas demand. F.o.b. price of Muntok white was reported stable at $3,595 a tonne.

Like black, local price of Sarawak white at Kuching grew stronger from RM 10,550 a tonne at the beginning of February to RM 11,500 a tonne at the month's close. On average, local price of white pepper increased by 6 per cent from the previous month. F.o.b. price was stable at $4,100 a tonne.

Hainan market witnessed some activities during the fourth week. Prices increased by around $65/tonne during the month with an average increase of 6 per cent compared to previous month. F.o.b. price increased by 5 per cent to $3,349/tonne at the month's close.

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