The Hindu Business Line : Indian pepper cheapest in October

Indian pepper prices were the cheapest among all origins toward the end of last month, when the rates after rising to higher levels began paring its gains.

In fact, from June onwards, there was an uptrend in prices and it had touched $3,021 a tonne in October. After that, the prices started falling steadily, according to the International Pepper Community (IPC).

In terms of price index, average prices for October were higher than September. In October, the IPC price index for black pepper increased by 4.7 points and for white pepper, it increased by 8.2 points. The increase in the black pepper index was mainly affected by the average price increase of Sarawak and Lampung black in October compared to September.

In the case of white pepper, the increase was mainly affected by significant increase in the average price of Sarawak white.

Theblack pepper demand in October has declined, particularly in India. Trading activity at Kochi has slowed down in October compared to the previous month. The f.o.b. price at Kochi dropped significantly from the peak of $ 3,043 a tonne f.o.b. in the third week of September to $2,760 a tonne at the end of October. That price was also notable as the cheapest amongst all origins.

Compared with the previous month, the average price has fallen by two per cent. This situation was likely because of speculative activity and excess stocks that were looking to be moved before the December/ January harvest.

Similar to the situation at Kochi, the market at Ho Chin Minh City, Vietnam, was also quiet. Trading activity at this origin was very limited. In addition to limited stocks at the local market, less demand from Muslim countries during the Ramzan holidays was also reported a factor affecting the situation.

Prices at HCMC decreased from the peak $2,800 a tonne f.o.b. for 500g/l black during the third week of September to $2,660 in the third week of October. The price closed at $2,770 a tonne at the end of the month. On an average, however, the price of black pepper at HCMC during October was better by 2 per cent.

In Lampung, the market was quiet. Raw material at farm level was exhausted, but limited stocks were available. Prices at the local market were down significantly from IDR 26,000 a kg during the third week of September to IDR 23,500 at the end of the month. However, the prices increased marginally by one per cent for local and four per cent for f.o.b.

In Sarawak, prices at local markets decreased from Malaysian ringgit (MYR) 9.06 per kg to MYR 8.23, while f.o.b. prices were reported stable at $ 3,200 a tonne.

Compared to the previous month, however, the average prices were better by five per cent for local and 10 per cent for f.o.b.

White Pepper

The market for white pepper has also come down during the

month. In Sarawak, local prices of white pepper decreased from MR

12.87 a kg to MR 11.94 at the month's close, while f.o.b. prices were

reported stable at $4,400 a tonne. The monthly average prices, however, increased by three per cent for the local price and 10 per cent for f.o.b.

In Bangla, some trading has taken place at local markets and the price

for white pepper came down from Rs 35,000 a kg to Rs 31,900 at the month's close. In Hainan, prices of white pepper were reported to have come down

marginally during October from the high of $3150 a tonne during the first

week, but on an average, the price improved by seven per cent. At HCMC, the f.o.b. price of white pepper eased marginally by one per cent.

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