IPC MARKET REPORT - No. 15/20, 6 - 10 April 2020

As the total death from COVID-19 outbreak nearly reached 100,000 people, many countries enforced more rigorous measures in trying to lessen the spread of the Virus. Indonesia reportedly implemented a large-scale social restriction in their capital city which would last for the next two weeks, as market this week showed a mixed response. In local market, Malabar black pepper was reported with 1% deficit when compared to the previous week averaging at USD 4,177 per Mt. The decrease of Malabar black pepper price could be contributed to the weakening of Indian Rupee against US Dollar. Indonesia black and white pepper were reported with a slight increase by 1% respectively as opposed to the previous week averaging at USD 1,467 per Mt for black pepper and USD 2,628 per Mt for white pepper. The increase of Indonesia black and white pepper price could be contributed to the slight strengthening of Indonesia Rupiah against US Dollar. Malaysia's black and white pepper were reported stable aver aging at USD 1,705 per Mt for black pepper and USD 3,059 per Mt for white pepper. Furthermore, Viet Nam black pepper was reported stable and unchanged whilst Viet Nam white pepper was reported with 1% deficit as compared to the previous week and was traded at an average of USD 2,347 per Mt. Following the significant weakening of Sri Lankan Rupee against US Dollar, Sri Lanka black pepper was traded with a 4% deficit as opposed to the previous week at an average of USD 2,660 per Mt. China white pepper was reported with an increase of 1% and was traded at an average of USD 4,239 per Mt locally.
In contrary, international market showed a rather positively outlook with only India origin recorded a deficit. India black pepper was reported with the same 1% deficit as compared to the previous week at an average of USD 4,440 per Mt. Indonesia black and white pepper were reported with an increase of 1% respectively as compared to the previous week averaging at USD 1,819 per Mt for black pepper and USD 3,129 per Mt for white pepper. Malaysia black and white pepper continued to be traded stable and unchanged. Furthermore, contrary to local price, Viet Nam black pepper 500 g/l, 550 g/l and Viet Nam white pepper were reported with an increase of 4%, 3% and 2% respectively as compared to the previous week averaging at USD 2,050 per Mt, USD 2,080 per Mt and USD 2,980 per Mt respectively. China white pepper was reported with an increase of 1% as opposed to the previous week and was traded at an average of USD 4,439 per Mt internationally. 

VIETNAM - PEPPER MARKET UPDATE 13TH APRIL 2020 – WEEK 16

Global pepper market is forecast to be slow due to affected by COVID-19.
Disease movements are still complicated, especially in the US&Europe - the major pepper markets in the world, will cause less import demand. The global pepper market maybe continue  faces disrupted supply due to social isolation requirements and restrictions on clearance of cargo from many countries around the world.

Through a quick inspection again with Customs & Department of Agriculture and Rural Development, Vietnam has exported up to 42,330 tons of pepper in March (higher than the figures we forecast last week over 8.000 tons). The first quarter 2020 export reached 83,246 tons that increasing by 12.6% compare with the same period in 2019 (exported 72,726 tons). This is new records from Vietnam and very impressive for everybody too.

March also recorded a sharp increase in imports to more than 10,000 tons from Chinese, it’s biggest quantity was imported within 1 month from China until now. Details of export/import data each country, I will try to analyze and send you within end this week.

Pepper market opening today with less offer from domestic suppliers. Market very steady and China continue buying beside other countries like ASIA/USA/EU.

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VIETNAM -PEPPER MARKET UPDATE 6TH APRIL 2020 – WEEK 15

First half of March 2020, Vietnam has exported pepper reached 16,689 tons with a turnover 35.21 million USD. Pepper exported in the first 2.5 months reach 57,128 tons, up 5.75% in quantity but down 11.24% in value over the same period last year. The average export price reached 2,110 USD/ton, down 5.25% compared to the average export price of February 2020.

In March, export reached 34,000 tons, bringing the total export volume in the first 3 months of 2020 to approximately 75,000 tons (same period in 2019 was 72,726 ton). This is very impressive record of Vietnam's pepper exports although the export volume to China decreased by over 10,000 tons in the first 3 months because influence of Covid 19. Details of export/import data each country, we will update and send you in the coming week.

At present, Vietnam has basically finished harvested 2020 pepper crop. Farmers/domestic agents only offer a very small quantity to cover temporary costs and continue storage due to low prices. The price is attractive so many customer/exporters… considering to stockpile.

China has better control of Covid, so it has been actively buying large quantity from last week especially white pepper. In addition, the market continues to receive great demand from the USA/UAE for both prompt and further shipment that make market stable and uptrend. Vietnam's currency last week slightly stronger compared to USD but not stability.

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# CARDAMOM INDIA - Kerala With no auction, cardamom piles up

IDUKKI, April 03, 2020 23:23 IS

 

Sector faces uncertainty as crop prices are decided at auctions

The cardamom sector is facing a deadlock in the absence of auctions, with the main buyers in Mumbai abstaining from taking new orders for nearly a month. The produce is held up with farmers and small-scale traders, K.S. Mathew, director, Vandanmedu Green Gold Cardamom Producer Co. Ltd., told The Hindu on Friday.

There are 12 auctioneers at the Spices Park at Puttady under the Spices Board of India. As per the licensing agreement, the auctioneer has to pay the farmer the price of cardamom within 10 days of the auction. The traders and industrial units that purchase the produce have to pay the auctioneer the price within 21 days. The mechanism was going on unhindered with the daily auctions, he said.

Cardamom’s price is decided at the auctions, without which there is total uncertainty. The price would be known only when the auctions restart, Mr. Mathew said.

Last price

It is estimated that the traders have to pay the auctioneers more than ₹200 crore for the last two to four consignments in the auctions. When the auctions were stopped following the COVID-19 scare the price was at ₹3,500 per kg.

Marketing sources said prices could dip as the next crop, predicted to be a bumper one, is set to arrive in the market by June/July, and a major quantity produced in the last season has remained unsold. Moreover, the crop’s export prospects will depend on the stance of Saudi Arabia, the main buyer, sources said.

No buyers

The last harvesting season witnessed the highest ever prices quoted in the auctions, reaching up to ₹9,000 per kg.

The absence of trading has affected not only the plantations but also small-scale farmers. Lalichan, a farmer in Peerumade, said there were no buyers with small-scale hill produce merchants ceasing to buy cardamom. A trader had agreed to take the produce without making payment now. A meagre price was offered.
“How can one sell the produce without knowing the price and without being paid,” he added.

Giji K. Raman for
https://www.thehindu.com/news/national/kerala

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#PEPPER - IPC MARKET REPORT No. 14/20, 30 March - 3 April 2020

As Viet Nam reportedly implemented a total nation-wide lockdown, starting 1 April 2020, in response of trying to flatten the curve of Corona Virus spreading, market this week showed a mixed response as only Viet Nam was reported with a decrease. In local market, Malabar black pepper was reported with an increase of 1% when compared to the previous week averaging at USD 4,219 per Mt. The increase of Malabar black pepper price could be contributed to the slight strengthening of Indian Rupee against US Dollar. Following the social distancing policy implemented in Indonesia some major markets in Lampung and Bangka, two major producing area of black and white pepper, are closed. Consequently, Indonesia black pepper was reported with a slight increase of 2% as opposed to the previous week averaging at USD 1,458 per Mt whilst Indonesia white pepper was reported stable at an average of USD 2,612 per Mt. Malaysia black and white pepper were reported with an increase of 1% respectively as comp ared to the previous week averaging at USD 1,703 per Mt for black pepper and USD 3,056 per Mt for white pepper. Furthermore, Viet Nam black and white pepper were reported with 2% deficit respectively when compared to the previous week and was traded at an average of USD 1,577 per Mt for black pepper and USD 2,381 per Mt for white pepper. Sri Lanka black pepper was traded with 1% deficit as opposed to the previous week at an average of USD 2,766 per Mt which could be contributed to the weakening of Sri Lankan Rupee against US Dollar. China white pepper was reported stable and was traded at an average of USD 4,214 per Mt locally.
International market showed a rather stable outlook with only Indonesia origin recorded an increase. India black pepper was reported stable at an average of USD 4,484 per Mt. Indonesia black pepper was reported with an increase of 2% as compared to the previous week averaging at USD 1,808 per Mt whilst Indonesia white pepper was reported stable averaging at USD 3,110 per Mt. Malaysia black and white pepper continued to be traded stable and unchanged. Furthermore, Viet Nam black pepper 500 g/l, 550 g/l and Viet Nam white pepper were also reported stable and unchanged. China white pepper was reported steady and was traded at an average of USD 4,414 per Mt.
Prices at US market this week was reported quite stable, though business had become slightly unpredictable and slow due to the nation-wide lockdown as US became country with the most active cases of Corona Virus with 228,874 (as of 3 April 2020) and 6,095 total death. Many pepper origins were still very cautious when prices were already at very low levels and unlikely to fall further when US Dollar strong against International local currencies. 

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INDIA - Spice industry faces huge crisis after suspension of exports in wake of COVID-19

While Gulf countries had already suspended cardamom import, the export of cardamom, pepper and other spices has now been temporarily suspended due to coronavirus fears.

Even as the COVID-19 pandemic spreads across the globe and India has announced a nation-wide lockdown, the spice industry is facing a huge setback. Farmers and traders are facing an enormous crisis after the export of cardamom, pepper and other spices was temporarily suspended due to coronavirus fears.

Last week the Spices Board suspended the cardamom e-auctions scheduled at e-auction centres at Bodinayakanur in Tamil Nadu and Puttady in Kerala with immediate effect until March 31. This has only added to the farmers’ woes. Within a week, the price of cardamom dropped by more than Rs 1,000 per kg. Till the last week of January, the price of cardamom was nearly Rs 4,000 to 4,500 per kg in the retail market. But now it fallen to Rs 2,000 to Rs 2,300. Pepper prices also fell to Rs 290 from Rs 330 per kg. Vendors are also not willing to buy spices such as cardamom, pepper and coffee from farmers.

Johny Joseph Vattathara, who runs Spice More Trading Company in Kumily in Kerala’s Idukki which trades in black pepper, cinnamon, cardamom and coffee, said that the COVID-19 pandemic has severely affected the spices trading and market. “Cardamom is mainly exported to Gulf countries. When COVID-19 started spreading across the world, the Gulf countries temporarily suspended cardamom import from other countries. We lost many export orders from the Gulf, presently we have no idea when the issue will be resolved,” he said.

Cardamom is firstly bought by vendors from Tamil Nadu and they export the product to other countries including the Gulf. But after the coronavirus scare, foreign countries stopped buying cardamom and the price continues to dip,” Johny added.

“Now the auctions have been suspended in Kerala and Tamil Nadu, so the movement of spices from Idukki district has stopped entirely. In the last cardamom auction, the average price quoted was only Rs 2,336 per kg,” Johny said.

Idukki district in Kerala is India’s largest producer of cardamom. Most of the natives in Idukki are farmers and live solely on income from agricultural produce. So when the traders stopped purchasing spices from them, the farmers are now in dire straits.

Small-scale traders are also upset over the present situation in the spices industry. “We vendors normally purchase spices from the farmers. But now we don’t know how to sell the products purchased through auction. With the lockdown in place, the market will also be suspended till April 14. We have already purchased and stored huge amounts of cardamom and pepper from the farmers. Now we don’t know when we’ll be able to sell it to wholesalers,” said MJ Joseph Mattapparampil, a spices vendor in Idukki.

AA George, a cardamom vendor, said, “In the present situation we can’t buy cardamom or other spices from the farmers. We don’t know when we can sell to wholesale vendors or through auction. The vendors have also stocked large quantities of cardamom and they are facing a big problem in selling their product.”

“Because of the COVID-19 pandemic, there is trade uncertainty in all countries and this will affect the import of cardamom and other spices. In the present situation, the vendors are not willing to purchase,” George added.

PM Thomas, a farmer, said, “Agriculture is my only source of income. But three days ago I tried to sell 10 kg of pepper but no vendor was ready to buy the product. I don’t know how to manage the situation.”

This report by
https://www.thenewsminute.com

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