The Hindu Business Line : Black pepper prices up 7% in January

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Kochi March 5 The composite price of black pepper in January 2007 increased by 85 per cent from that of January 2006, while it increased by 7 per cent to $2,515 a tonne in January from $2,343 a tonne in December 2006.

According to International Pepper Community, its price index increased by 11.32 points for black and 4.06 points for white during the month of January. The price index has risen sharply since July 2006 before easing slightly towards end of 2006.

"January was an active trading month with Indian pepper entering the market and Vietnam pepper expected to follow sometime in March," IPC sources said.

Quiet & cautious

Vietnam's market was quiet as players were cautious. They wanted to watch the development until the flow of the March harvest is more apparent. It was reported that despite the slightly firmer prices, Vietnam is still the cheapest origin. In the second half of the month, the price for black 550g/l moved from $2,240 to $2,360 a tonne at the month's close.

Vietnam reportedly exported 1,16,670 tonnes of pepper (around 1,03,500 tonnes of black pepper) in 2006 valued at $190.4 million, which is 24 per cent increase from previous year.

In India, the scenario was reportedly grim with significant decline in production due to erratic weather and diseases, they said. The lack of carryover and lower crop harvest year caused the f.o.b price of MG1 black pepper at Kochi to increase significantly from $2,522 a tonne at beginning of January to $2,891 at the month's close.

Other markets

In Sarawak, local market was more active and prices gradually moved up from RM7.64/kg ($2,174 a tonne) at beginning of the month to RM7.98/kg ($2,279 a tonne) at the month's close. However, the f.o.b price of Sarawak black was reported stable at $3,100 a tonne. In 2006, Sarawak shipped around 12,570 tonnes of black pepper compared to 14,020 tonne in 2005.

In Lampung, the local market was quiet as stock was tight and prices were stable. Local price was IDR 20,000/kg, while f.o.b price was $2,670 a tonne. Export of black pepper from Lampung in 2006 was 17,110 tonne, which declined from 18,435 in 2005.

In Sri Lanka, the local average price increased from SLRs 221/kg to SLRs 240/kg at the month's close. In 2006, Sri Lanka exported 8,190 tonnes as against 7,980 tonnes in 2005.

White Pepper

White pepper composite price increased to $3,588 a tonne in January from $3,495 a tonne in December 2006. The composite price for January 2007 increased significantly by 80 per cent from January 2006.

The average price of white pepper at local markets in Bangka, Sarawak and Hainan increased generally. In Bangka, the local market was steady and trading was limited as stocks were tight. For January 2007, local price increased from IDR 28,000 a kg to IDR 30,000. F.o.b price, however, fell by 2 per cent to $3,530 a tonne.

Indonesia exported 10,677 tonnes of white pepper from Bangka in 2006, declined from 11,570 tonnes in 2005.

In Sarawak, local prices of white pepper increased gradually from RM 10.5/kg to RM 10.7/kg at the month's close. F.o.b prices were reported stable at $4,100 a tonne. In 2006, Sarawak exported 3,980 tonnes of white pepper, an increase of 29 per cent from 2005.

In Hainan China, local price of white pepper increased by 5 per cent to $2,983 a tonne, while f.o.b price increased to $3,183 a tonne at the month's close.

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