The recent drop in black pepper prices in Vietnam is likely to have an impact on global black pepper rates including India, following high production in almost all of the pepper growing regions.
Prakash Namboodiri, Chairman, All India Spice Exporters Forum, told BusinessLine that Vietnam — where harvesting is at its peak — has seen prices dropping on Tuesday to 50,000 VND/kg (Vietnamese Dong) from 2,05,000 VND/kg registered in December 2014.
Higher area in Vietnam
Vietnam’s acreage has gone as high as 1,30,000 hectares which will yield 3,00,000 tonnes in the next few years, which could bring the prices further down due to glut in pepper supply globally.
Black pepper asta grade, which is similar to Indian MG-1, was traded on Tuesday at $2,700 (₹175/kg) fob Ho Chi Minh city for April shipment with further sellers at close. Brazil is also offering similar prices for last quarter of the year 2018, he said.
Lower domestic crop
Vishwanath Keshavamurthy, Co-ordinator, Consortium of Pepper Growers Organisation in Bengaluru, said that the Vietnam price drop would have an impact on domestic prices which is ruling at ₹390/kg in Kochi.
Even as the harvest is in progress, Indian growers are anticipating a lower crop by the end of March which is around 55,000 tonnes.
However, he expressed hope that the government intervention to curb malpractices connected with pepper imports will help farmers in realising better prices for the spice.