Global pepper prices to be steady till June

Rise in demand may slightly push the price up

The global pepper mart expects a steady market for the next couple of months, as supply is presently restricted to Vietnam, the world's largest producer and exporter.

Sources say there would be good demand from Europe, America and West Asia, as the price has dipped by $250 a tonne since January. The rise in demand might slightly push up the price.

This situation would change only after the Indonesian crop comes to the market, slated for July. There is no authentic report on the crop size there. A section of US importers hope for a further reduction in prices once Indonesia enters the market. They expect a steady crop there and expect prices to then fall by $200-300/tonne.

Harvesting in Vietnam is progressing well and the stock is likely to be 60,000-65,000 tonnes. The Vietnam Pepper Association says in the first quarter of this year, companies exported 39,000 tonnes, bringing in $261 million in revenue, up 27 per cent in volume and 23.6 per cent in value compared to the same period last year. Vietnam currently accounts for about 45 per cent market share in the global market.

According to information available, the crop from Brazil will be lower during the next season. The harvesting season begins there in September. So, the supply from Indonesia will determine price movements in the near term.

The crop from Karnataka has hit the local markets and the current offer rate is Rs 335-345/kg. Around 30,000 tonnes are expected from Karnataka in this season; it is the top producing state in India.