Pepper prices have declined again after witnessing a sharp rise recently that pulled the prices of the ASTA grade pepper to $3,330 a tonne. The lack of demand from the major consuming regions such as the European Union (EU) and the US has brought down the prices to a more realistic level.
It is interesting to note that all the major producers — India, Indonesia and Vietnam — have now slashed prices to $3,050 for the ASTA grade. Reports say that Vietnamese traders are ready to sell pepper even at $2,950. However, the fresh round of buying from the US and EU may come only next month.
A top exporter of the spice said the recent rise in prices was not backed by any overseas or local demand. Hence, the prices declined. Buyers from EU and the US have adopted a “wait and watch” approach and were not in a hurry to procure the commodity. This resulted in its futures prices declining heavily. Vietnam and Indonesia, which were following the Indian futures market, immediately reacted to the crash in Indian market and slashed their prices.
The supply of pepper to the Kochi market has been slow even after the prices touched their recent highs. Due to the scarcity of stock, Vietnam has also not been in a hurry to clear the carryover stock. The low stock condition is expected to prevail till the next harvesting season which begins in December for India and in February for Vietnam.
The price of pepper might increase next month due to increased local and overseas demand of the commodity during the winter season.