The increased local demand of pepper during Diwali has pushed the prices of commodity. The MG1 variety was quoted at $3,275 a tonne today, rising $175 a tonne in a week. However, the Indian variety is not much in demand globally as Indian prices are the highest across the globe.
According to leading traders, stocking for the winter season is another reason for the sharp rise in prices. This is the busiest season for the commodity in India and for the next four months, around 10,000 tonnes of pepper is required to fulfill the local demand. The sudden and sharp increase in prices forced buyers to purchase immediately. Also, reports of crop damage in Vietnam due to heavy rain and confusing reports on the stock position in Indonesia also led to instant buying.
Vietnam, following India, hiked the price by $150 to $3,200 a tonne from last week as overseas demand especially from the US increased.
The majority of global stock would be finished by the end of December, hence, beginning of next year would witness a tight supply. Vietnam’s fresh crop is expected only by the end of February. Thus, overseas buyers, especially the US, are keen to stock pepper at present. They are buying mainly from Indonesia and Brazil, as they offer low prices.
