Spices Board signs MoU for pepper futures in Vietnam

The Spices Board has signed a memorandum of understanding (MoU) with Vietnam Pepper Association (VPA) — Vietnam’s national body for pepper trade — for starting futures trading for pepper in Vietnam.

The MoU was signed during the International Pepper Community (IPC) meeting, in Mysuru during November 21-24. Spices Board will initiate steps to start futures trading very soon, sources said.

The board and VPA are in touch with MCX and NCDEX for starting the trade there. We have signed the MoU, but not finalized the agency to start the futures trade, he said.

VPA representatives were also in touch with the exchanges in India. Vietnam is the largest pepper producing and exporting country in the world with an annual output of 150,000 tones. They also command roughly 40 per cent of the global trade of pepper. Vietnam has not started futures trading and the exporters are following the Indian counters for fixing prices.