IPC MARKET REPORT 33/19, 12 August - 16 August 2019

Local Market
Market this week showed mixed response with a rather negative outlook.
In local market, Malabar black pepper was traded with 2% deficit as compared to the previous week with an average of USD 4,679 per Mt.
Indonesia black pepper was reported steady with an average of USD 1,894 per Mt. Following the arrival of new crop, Indonesia white pepper was reported with a slight 1% deficit as opposed to the previous week averaging at USD 3,366 per Mt. In local currency, Muntok white pepper was traded with an average of IDR 48,000 per Kg
Malaysian black and white pepper were reported stable with an average of USD 2,340 per Mt for black pepper and USD 3,860 per Mt for white pepper.
Viet Nam black and white pepper were also reported stable and unchanged.
Following the end of harverst season both in Sri Lanka and China, Sri Lanka black pepper and China white pepper were traded with the same 2% deficit as compared with the previous week with an average of USD 2,493 per Mt and USD 4,790 per Mt respec tively.

International market
In international market, FOB price of India black pepper was reported with the same 2% deficit as compared to the previous week at an average of USD 4,960 per Mt.
Indonesia black pepper was reported stable and unchanged. Whilst Indonesia white pepper was traded with 1% deficit as compared to the previous week with an average of USD 3,982 per Mt.
Malaysia black and white pepper continued stable and unchanged.
Furthermore, Viet Nam black pepper 500 g/l, 550 g/l and Viet Nam white pepper were reported with an increase by 1% as compared to the previous week averaging at USD 2,265 per Mt, USD 2,330 per Mt and USD 3,415 per Mt respectively.
China white pepper was traded internationally with 2% deficit as opposed to the previous week at an average of USD 4,990 per Mt. The decrease in price of China white pepper aside from the effect of harvest season, it was also contributed by the slight weakening of Chinese Yuan against US Dollar.



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India Spices: Wednesday, Aug 14

By Preeti Bhagat

NEW DELHI – Futures contracts of all spices on domestic exchanges, barring mentha oil and jeera, ended lower today.

Coriander futures on National Commodity and Derivatives Exchange hit a 10-week low of 5,810 rupees per 100 kg because of imports from Ukraine, Russia and Bulgaria, said Kamal Vijayvargia, a Kota-based dealer.
"Weather is very favourable right now for next season's sowing, which is a negative factor for prices… Imports have also risen a lot and are coming into India at $650 per tn," he said.

Contracts of jeera ended higher as investors covered their short positions after prices hit an over four-month low of 16,810 rupees per 100 kg in early trade today.
The rise in prices today was also because arrivals in Gujarat's Unjha market fell by 4,000 bags (1 bag = 55 kg) to 6,000 bags, said Mahesh Yadav, a local dealer.

Turmeric futures ended in the red because of profit booking after prices hit a three-week high of 7,198 rupees a 100 kg on Tuesday.

Futures contracts of mentha oil on Multi Commodity Exchange hit a two-month high of 1,324 rupees per kg due to strong demand from domestic stockists and pharmaceutical companies, said Rajiv Gupta, a Sambhal-based spice oil trader.

Cardamom futures hit the 4% maximum lower circuit today as heavy rainfall in Kerala is likely to help plantations with better fruit formation and growth, traders said.

Heavy-to-very heavy rainfall is likely over Kerala during the next 48 hours due to a cyclonic circulation over northwest Arabian Sea, India Meteorological Department said. It also issued a 'red alert' for the state today.

On Indian Commodity Exchange, the August pepper contract traded lower following reports that the Sri Lankan government is likely to hold talks with India for relaxing the minimum import price of the spice.
Currently, Sri Lankan exports up to 2,500 tn of pepper to India at zero duty under the Indo-Sri Lankan Free Trade Agreement. Exports over and above this quantity are subject to 8% duty under the South Asia Free Trade Agreement.


This copy was first published on the Cogencis WorkStation
© Cogencis Information Services Ltd. 2019. All rights reserved.



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VIETNAM - PEPPER MARKET UPDATE 15TH AUG

 






According to Customs and Vietnam Pepper Association, Vietnam's pepper export in July reached 23,461 tons with turnover reached 57.6 million. Compared with June, exports decreased by 26.1% in volume and 25% in value.

In the first 7 months of 2019, Vietnam has exported 203,737 tons with turnover 520.9 million USD. Compared to the same period in 2018, export volume increased by 37.5%, turnover decreased by 0.08%.

The average export price of black pepper in the first 7 months of 2019 reached 2,501 USD/ton, white pepper reached 3,041 USD/tons. Compared to the same period of 2018, the export price of black pepper was only 77.6% and the price of white pepper was only 62.5%.

There were 109 countries importing Vietnam pepper. China is biggest of Vietnam pepper market with imported in the first 7 months of 2019 reached 51,741 tons, roughly 25.4% of total Vietnam pepper export. Other markets in Asia also increased such as: India increased by 2,333 tons, Nepal increased by 2,103 tons, Iran increased by 1,565 tons, Thailand with an increase of 1,143 tons, the United Arab increased by 880 tons…

Europe become the second largest pepper importer with total import of 38,373 tons, around 18.8%. In which Ireland increased the most by 2,757 tons, Germany increased by 2,633 tons, Turkey increased by 1,393 tons, the Netherlands increased by 1,287 tons…

USA was the third largest import market of Vietnam Pepper with 30,397 tons, equivalent 14.9%.

Pepper market opening today firmer and less offer raw material. Chines has been buying few quantity for white pepper beside good demand from Russia/Ukraine. USA/EU/Nepal/India almost quite at our side.

Some exporters covering short position Sept/Oct that sold out before to avoid market up when EU/Middle East back after long holiday. We still recommend should consider to cover stock position for Sept/Oct/ shipment.

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Sri Lanka’s move to ease exports to India worries pepper industry

Any export above the limit is subjected to 8 per cent duty under South Asia Free Trade Agreement.
By PK Krishnakumar  ET Bureau|Aug 13, 2019

Kochi: India’s pepper industry took exception to the reported move by the Sri Lankan government to hold talks with the Indian ministry for relaxing the minimum import price (MIP) fixed for black pepper to protect the domestic industry.

Over a year ago India had slapped an MIP of Rs 500 per kg on black pepper to curb increasing imports of the spice into the country that had pushed down prices to around Rs 350 per kg from nearly Rs 500 per kg.

The government had levied MIP  pepper traders and exporters complained that Vietnamese pepper was coming to India via Sri Lanka with certificate of origin issued by the latter.

“Sri Lanka should have ensured that no certificate of origin was issued for Vietnam pepper routed to the country which caused great damage to Indian pepper farmers,’’ said Kishore Shamji, Kerala coordinator of Indian Pepper and Spice Traders, Growers, Planters Consortium.

Currently, India levies zero duty import on 2,500 tonnes of pepper from Sri Lanka annually under the Indo-Sri Lanka Free Trade Agreement. Any export above the limit is subjected to 8 per cent duty under South Asia Free Trade Agreement as against the usual customs duty of 70 per cent on pepper import into India.

“Indian pepper growers feel no further concession should be made till domestic prices reach Rs 500 per kg. Any further concessions will lead to the destruction of pepper farmers in India,’’ Shamji said, adding that the spice extraction industry is already importing pepper without duty under advance licence for value addition and re-export. Indian pepper is the highest priced in the world market at present and as a result pepper from other markets is being smuggled into the country. “Brazilian pepper is being smuggled to the country and sold at Rs 370 per kg,’’ said Jojan Malayil, chief executive officer of Bafna Enterprises.



www//economictimes.indiatimes.com/

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Chilli industry spices up people's lives in central China

Source: Xinhua| 2019-08-08 20:45:43|Editor: mingmei

CHANGSHA, Aug. 8 (Xinhua) -- A Chinese phrase "chixianghela" depicts a rich lifestyle of eating delicious and spicy food, and that's what Chen Jinxiang's life is all about these days.

Chen used to make ends meet by tending rice paddies deep in the mountains of central China's Hunan Province. But his life took a U-turn after switching to the chilli industry.

"Last year, I grew 0.4 hectares of chilli, and made about 30,000 yuan (4,260 U.S. dollars)," said Chen, a farmer in Xiuling Village of Rucheng County. "This year I have expanded the area to one hectare, and now the chilli is ready for collection."

In the serene village of Xiuling, which means "beautiful mountains" in Chinese, swathes of red chilli and peppers envelop the lush green mountains. The plantation is part of the county government's efforts to help lift locals out of poverty, while creating a "distinctive township based on chilli" in answer to a central government plan.

In 2016, the Chinese government issued a plan to create about 1,000 "distinctive townships" across the country that center on tourism, traditional culture, education, manufacturing and more by 2020.

Over the years, many such townships have mushroomed, including an "acrobatics township," "music township" and "opera township," to name just a few.

So the county of Rucheng, which has a tradition of chilli cultivation and perfect air and soil conditions for growing chilli, decided to turn itself into a special township of chilli.

According to official figures, by the end of 2018, a total of 780 hectares of chilli has been planted in the county. Local officials handed out more than 16 million chilli seedlings, and encouraged 5,461 impoverished families to grow more than 653 hectares of the crops.

To help the growers reap benefits, the local government introduced a major chilli company into the county. The company purchases the chilli from farmers at a bottomline price when the market price is low. Meanwhile, agricultural experts have been designated to help the poor farmers learn the techniques of plantation.

"We also help sell the chilli for the farmers online," a local official said.

China aims to eradicate poverty by 2020, the target year to complete the building of a moderately prosperous society in all respects.

The county made the leap in 2018, thanks to the chilli industry.

Last month, Quanshui Township, which administers Xiuling Village, was named one of the "Top Ten Special Agricultural Townships" in Hunan Province.

The chilli has been transformed into different products, including pickled chilli, chopped chilli and chilli sauce, and has been included in local spicy specialties.

In the exhibition hall of Fanhua Food Co., Ltd. in Rucheng, a variety of chilli products are on display.

"We came to invest in the industry in 2018, and our products have taken up almost a half of the chilli market in the county," said Zhu Shuqing, with the company. "We see rosy prospects."

Zhu said that the county is close to coastal provinces like Guangdong, where there is a robust market for chilli, particularly chilli from Hunan Province, which is known in China as a hotbed for chilli production and consumption.

"More people in China are beginning to fall for spicy food, and the chilli industry has huge potential," Zhu said. "The industry truly spiced up people's lives here."

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Chinese garlic prices have begun to fall

From The Fresh Plaza

Source: Voice of Chinese Villages

Publication date: 8/8/2019

The overall garlic price in 2019 rose in northern China. According to Xie Lei, an analyst at the Beijing Xinfadi Market, since May, prices of the new crop sold at the market have increased by 104% over the same period last year. In the following two months, prices continued to rise, only starting to fall recently.

Recently, the wholesale price at the market stayed at 8.4-9.6 yuan/kg, up 200% year-on-year compared with that of 2-4 yuan/kg during the same period last year. In the last 2-3 weeks, prices at the market became less stable and started to drop. As the stockpiling season will reach an end in August, many growers are rushing to sell, leading prices to start declining recently.

For garlic growers, the quality of garlic not yet in storage will decline by the beginning of autumn, accompanied by a lack of purchasers, so it is also the final opportunity to sell.

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PEPPER PRICES 2010 - 2018

Cardamom price on a record high

IDUKKI , August 05, 2019 00:17 IST

Delayed harvest leads to poor supply

Cardamom price continues to break records because of the crop’s poor availability in the market. A drop in production is predicted in the days ahead too of the current season.

Market sources said that the first crop of the season had not reached the auction centres and adverse climate had impacted the production. Usually the first crop reaches auction centres by June/July. However, because of poor southwest monsoon, the first crop is expected only by the end of August or in September this time.

The maximum price recorded at the Spices Park at Puttady on Saturday was ₹7,000 a kg while the average price was ₹4,733. It was a record in the maximum and average prices in both the auctions, held in the morning and eventing, at Spices Park.

 In the evening auction held by Header Systems (India) Ltd., Nedumkandam, on Saturday, 26,142 kg reached the auction centre, all of which was sold. The maximum and average prices respectively were ₹7,000 and ₹4,655 per kg.

In the morning auction held by Mas Enterprise, Vandanmedu, of the 8,796 kg of cardamom that had arrived, 8,741 kg was sold at ₹5,212 (maximum) and ₹4,733 per kg (average). The maximum price had remained above ₹4,000 per kg from July 24.
Flood impact

The Cardamom Hill Reserve (CHR) area received very poor rainfall and the atmospheric temperature remains high, affecting the flowering and the growth of beans. In addition, the flood of 2018 had taken a toll with plants largely destroyed in the CHR. Market sources said the high fluctuation in prices may not benefit the farmers and it is likely to drop with the arrival of the first crop.
Giji K. Raman


https://www.thehindu.com/news/national/kerala/cardamom-price-on-a-record-high/article28816195.ece
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Price Indication several spices

August 5, 2019

Good Morning
This week Price Information received form India.
In case of interest please contact

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Price Indication (FOB MUNDRA) (Prices are subject to reconfirmation)

New Crop Cumin seeds
Singapore 99%: $ 2360
Singapore 99.5%: $ 2390
Europe 99%: $ 2425

New crop Fennel seed
Europe 99%: $ 1400
Semi Europe: $ 1245
Singapore 99%: $ 1035

New Crop Fenugreek seeds
Machine Clean: $ 695
Sortex: $ 725

New crop Coriander Seeds
Eagle (M.P. Origin): $ 930
100% Split: $ 905
Super XO: $ 1030

Mustard Seeds
Bold: $ 570
Small: $ 625

New Crop Dill Seeds
Whole 99%: $ 1000
100% split: $ 955

* Kalonji (Black Cumin) seeds*
Machine Clean: $ 1590
Sortex: $ 1640

Turmeric Finger (Double Polished)
Salem, No. 1: $ 1180
Nizamabad, Good Grade: $ 1065
Nizamabad, FAQ: $ 1025

Shipment: Prompt
Packing: 25/50 KG
Prices are subject to reconfirmation

IPC Market report No. 31/19, 29 July - 2 August 2019

LOCAL MARKET REPORT
Market this week showed mixed response.
In local market, Malabar black pepper was reported with an increase by 1% as compare to the previous week averaging at USD 4,892 per Mt.
Indonesia black and white pepper were reported with a 1% deficit as opposed to the previous week with an average of USD 1,918 per Mt for black pepper and USD 3,446 per Mt for white pepper. As Indonesian black and white pepper in local currency were traded unchanged as opposed to the previous, the decrease in Indonesia pepper was highly contributed to the weakening of Indonesian Rupiah against US Dollar.
Malaysian black pepper was reported to be traded with 1% deficit as compared to the previous week, averaging at USD 2,369 per Mt. Whilst, Malaysian white pepper was reported stable averaging at USD 3,909 per Mt.
Viet Nam black pepper was reported to be traded with 1% deficit as opposed to the previous week, averaging at USD 1,876 per Mt while Viet Nam white pepper was reported unchanged.
Sri Lanka black pepper was reported with a slight increase of 1% as compared to the previous week, averaging at USD 2,538 per Mt.

INTERNATIONAL MARKET

In international market, FOB price of India black pepper was reported with an increase by 1% as compared to the previous week averaging at USD 5,182 per Mt.
Indonesia black and white pepper were reported with a deficit of 1% as opposed to the previous week with an average of USD 2,358 per Mt for black pepper and USD 4,074 per Mt for white pepper.
Malaysia black and white pepper were reported stable and unchanged.
Furthermore, Viet Nam black pepper 500 g/l, 550 g/l and Viet Nam white pepper were reported stable averaging at USD 2,265 per Mt, USD 2,330 per Mt and USD 3,415 per Mt respectively.

US market was reported stable and unchanged with Muntok spot price being reported at USD 5,072 per Mt 

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IPC REPORT ABOUT INDONESIAN PEPPER CROP

Indonesian Crop Survey.

Pepper Crop Situation in Lampung

Being known as the origin of black pepper in Indonesia, pepper in Lampung is cultivated in all 15 districts, totaling an approximate of 45,742 Ha with concentration area being East and North Lampung and Tanggamus district. Whilst other districts cultivated pepper in a smaller scale.
As unfavorable price continues to progress these past years, many farmers has applied intercropping to make ends meet. Many farmers in Lampung chose to intercrop with coffee, cocoa and banana.

In the past two years, favorable weather condition has resulted in good crop and yield in most districts.
Considered as the symbol of Lampung, farmers still feel the pride of cultivating pepper despite the current unfavorable price.
Therefore, many farmers still tried to maintain their pepper crop as best as their economy allows them.
As pepper farmers in Lampung mostly traditional farmers, they still prefer compost fertilizers.

Crop Situation in Lampung by District

North Lampung

Condition of pepper gardens in North Lampung has changed quite significantly this past year.
Area of pepper cultivation in Ogan Lima, Cahaya Negeri, PulauPanggung had slightly dropped due to the fact some areas had been converted to other crops for intercropping which is more profitable and some areas were lost due to diseases,
During the crop survey unhealthy vines were frequently found and farmers were found trying to stop the spreading of the disease by cutting down the infected vines.
However, many rehabilitated pepper gardens were also found during our survey.
Currently farmers are still picking their crops and it would continue to the beginning of August.
Despite the spreading of diseases and converted crops, good weather condition has resulted in good production this year which is confirmed to be better than 2018.



East Lampung

In the past few years, East Lampung has surfaced as the main area of pepper cultivation in Lampung.
Concentration areas of pepper cultivation are MargaTiga, Melinting and Sukadana.
It is observed that most farmers in East Lampung prefer monocropping.
Furthermore, the gardens in East Lampung were better and much more maintained than that of North Lampung.
Significantly less of unhealthy vines were observed in East Lampung though reports of some unhealthy vines come from some farmers but in a smaller scale.
Farmers in East Lampung still continue their nursery programme and East Lampung has become the origins of other districts seeds/shoots distribution programme from the government.
Farmers in East Lampung still keeps a high spirit despite the unfavorable price.
Currently farmers have almost finished picking their berries and continued with drying process.
Farmers and Plantation Official in East Lampung confirmed that this year crop will be better than 2018 as it benefited from the goo d weather condition. Some farmers even projected that 2020 will also bring a good crop.



Tanggamus

Following report of last year, our crop survey went to confirmed reports of pepper in Tanggamus.
District Tanggamus is consisted of 20 sub-districts where Air Naningan and PulauPanggung became the main sub-districts of pepper.
With last year production reaching 2,988 Ton from 5,240 Ha the productivity of pepper crops in Tanggamus district was 570 Kg/Ha.
Upon observing many pepper gardens in Tanggamus, we found that pepper gardens in Tanggamus are well maintained and produces good pepper.
Furthermore, due to its geographical terrain, it was common to find pepper garden on a steep hill.
Farmers in Tanggamus also implemented intercropping system mostly with coffee.
Harvest season in Tanggamus is currently in full swing and to conclude by early August.
It was a very common sight to see farmers drying their pepper in front of their houses.
During our observation we also found some unhealthy vines due to disease and pests.
Many rehabilitated gardens were also encountered. This year crop is confirmed to be better than 2018 as confirmed by most farmers and Plantation Officials of Tanggamus.
Tanggamus Plantation division is currently implementing fertilizer distribution programme to pepper farmers in Tanggamus.

Major Problems

Aside from the common issues of unfavorable price in all districts, many cases of Phytophthora and Yellowing disease were found in some districts.
Many farmers in North Lampung complained on the free seeds/shoots distributed by Local Government as it only grows tall but bear no fruits.



Farmers App

After its launched last July 2018 in Bangka, IPC Farmers App was introduced to Belitung Farmers in a Dissemination and Farmers Training Workshop in February 2019. IPC is currently planning to organize second workshop in collaboration with East Lampung Plantation Division scheduled to be held in September 2019. IPC will continuously organize workshops in other pepper farms regions such as Kalimantan, Sulawesi and many other to increase farmers awareness of the App and also to update farmers so as they could explore the App more efficiently on the market, cultivation practices and many other.

Conclusion

Aside from East Lampung, Tanggamus is confirmed to be another main concentration of pepper. These two districts presented a good and well-maintained garden while North Lampung is currently under-going some rehabilitation of its gardens. East Lampung farmers prefer monocropping whilst other districts implemented intercropping with coffee, cacao and other crops. Backed up by a good weather condition in most districts, this year Lampung is confirmed to produce more than in 2018 as harvest will continue until mid or end of August. Considering the increase in Lampung export of pepper as of May 2019 which amounted to 14%, it is estimated that Lampung's total production will be around 22,000 Mt or more. Projecting an increase by 2,000 Mt as compared to last year figure. Pepper export from Lampung as of May 2019 amounted to 4,501 Mt.

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BLACK PEPPER - USA IS ALSO EXPORTER

United States of America is one of the countries that import quite a lot of pepper from various pepper producing countries whether for its domestic consumption or for re-export to other countries.
In 2017, United States of America was reported to have exported a total of 12,938 Mt of pepper which 43% or 5,517 Mt of it comprised of whole pepper and 57% or 7,421 Mt of it ground pepper.

United States of America on average exported a total of 1,078 Mt per month in 2017. The total revenue of United States pepper export in 2017 was reported to be as high as USD 57.1 Million, thus, recording an average price of the total pepper exported by United States of America at USD 3,118 per Mt for whole pepper and USD 5,370 per Mt for ground pepper.

Year 2018 saw a decreasing trend in terms of quantity of pepper exported by United States of America.
United States of America was reported to have recorded a total of 9,290 Mt which comprised of 4,640 Mt of whole pepper and 4,650 Mt of ground pepper. Thus, recording 28% decrease as compared to the same period in 2017.
The average export of pepper by United States of America was reported to be at 774 Mt per month. In accordance with decreasing in terms of quantity, United States of America’s revenue from pepper export was reported to have declined by 22% to a total of USD 44.4 Million which recorded an average price of the total pepper exported by United States of America at USD 3,124 per Mt for whole pepper and USD 6,435 per Mt for ground pepper or stable for whole pepper and increased by 20% for ground pepper as compared with 2017.

As of April 2019, United States of America was reported to have exported a total of 2,652 Mt which comprised of 1,205 Mt of whole pepper and 1,447 Mt of ground pepper. Thus, recording a decrease of 21% as compared to the same period in 2018. By the end of April 2019, the total revenue of pepper export by United States of America was reported to have reached USD 13.7 Million, recording a loss of 13% when compared to the same period in 2018. The average price of the total pepper export by United States of America as of April was reported at USD 3,067 per Mt for whole pepper and USD 6,899 per Mt for ground pepper.

Until the end of April 2019, United States of America was reported to have imported a total of 28,688 Mt of pepper which 2,652 Mt of it went for re-export purposes.

By the end of April 2019, United States of America was reported to have imported pepper from various countries such as Viet Nam with 17,227 Mt, Brazil with 5,170 Mt, India with 2,224 Mt, Indonesia with 1,978 Mt and Germany with 711 Mt .
Furthermore, as of April 2019, United States of America’s top 5 country destinations for its pepper were reported to be Canada with 1,424 Mt (a decrease of 19% as compared with the same period in 2018), Mexico with 233 Mt (a decrease of 27%), United Kingdom with 113 Mt (a decrease of 37%), Japan with 104 Mt (an increase of 10%) and Taiwan with 82 Mt (a decrease of 16%).
The decrease of export to United Kingdom was the result of United Kingdom directly imported pepper from pepper producing country such as Viet Nam (an increase by 411 Mt as compared to the same period in 2018). United Kingdom’s preference towards importing from Viet Nam origins as opposed to United States of America could be contributed to the fact that Viet Nam offer more competitive price.

IPC - International Pepper Comunity

PEPPER MARKET UPDATE 29TH JULY 2019 form VIETNAM

According to Customs data, pepper exports in the first 15 days of July 2019 reached 11.090 tons, value 28.2 million $, up 6.6% in volume, but down 11, 6% in value compare with the same period in 2018. Accumulated from 1st January to July 15th 2019, pepper exports reached 187.7 thousand tons, value 479.8 million $, up 32% in volume, but decreased 0.9% in value compared to the same period in 2018.

Specifically, the total pepper area of Vietnam now is 145,447 hectares, down about 4,000 hectares compared to 2018. Lets we update estimating crop size during Oct/November this year after investigation.

Market today opening unchanged after slightly easier from weekend. Less demand and some USA asking for further shipment. Other destination like Chines/Nepal/EU very very quiet.

Other origin like Indonesia/Brazil/Malaysia almost same situation from last week.

IPC Market report & Prices Buletin 26 july 2019

MARKET REPORT

Market this week showed a rather negative outlook.

Local Market
In local market, Malabar black pepper was reported stable with an average of USD 4,866 per Mt.
As Lampung is currently undergoing harvest period, Indonesia black pepper was reported with a 4% deficit as opposed to the previous week with an average of USD 1,930 per Mt. Whilst, Indonesia white pepper reported stable averaging at USD 3,468 per Mt. Indonesian black and white pepper in local currency were traded with an average of IDR 27,000 per Kg and IDR 48,500 per Kg respectively.
Malaysian black pepper was reported to be traded with 2% deficit as compared to the previous
week. Whilst, Malaysian white pepper was reported stable averaging at USD 3,926 per Mt.
Viet Nam black pepper was reported to be traded with 1% deficit as opposed to the previous week, averaging at USD 1,901 per Mt while Viet Nam white pepper was reported unchanged.
Sri Lanka black pepper continued to be traded negatively as the harvest period progressed. Recording a 3% deficit as compared to the previous week at an average of USD 2,524 per Mt.
China white pepper was reported unchanged averaging at USD 4,688 per Mt.

Currency x U$
CHINA -CNY - 6,88
INDIA - INR - 69,00
INDONESIA - IDR - 13,987
MALAYSIA - MYR - 4,12
VIETNAM - VND - 23,718

International Market
In international market, FOB price of India black pepper was reported stable at an average of USD 5,155 per Mt.
Indonesia black pepper was reported with a deficit of 4% as opposed to the previous week with an average of USD 2,373 per Mt. Whilst, Indonesia white pepper was reported unchanged averaging at USD 4,099 per Mt.
Malaysia black and white pepper were reported stable and unchanged.
Furthermore, Viet Nam black pepper 500 g/l, 550 g/l and Viet Nam white pepper were reported to be traded negatively with 1% deficit as compared to the previous week averaging at USD 2,273 per Mt, USD 2,338 per Mt and USD 3,423 per Mt respectively.
China white pepper was reported stable at an average of USD 4,888 per Mt in the international market.
US market was reported stable and unchanged with Muntok spot price being reported at USD 5,072 per Mt.

Prices of cardamom -India

Prices of cardamom, Queen of Spices, soar as wild weather wipes Indian production

Sudarshan Varadhan

NEW DELHI (Reuters) - Every year, tens of millions of Hindus flock to the Venkateswara Temple in the southern Indian state of Andhra Pradesh to pay tribute to site’s patron deity and pick up some of its famous sweets, the legendary “Tirupati laddu”.
The traditional delicacy is baked with sugar, flour, ghee, nuts and raisins and studded with cardamom, which has surged in price this year as India’s erratic weather ravages production of the pod, known as “the Queen of Spices”.

That spike has created new cost and supply pressures for buyers of the spice, like the temple, which offers a limited number of complimentary laddus to visitors and charges for extras.

“We are already incurring a loss making laddus, and this makes it worse,” a senior temple official told Reuters.

The temple typically buys 120 tonnes a year of high quality small cardamom pods, the most sought after kind, to meet demand. A year ago, it paid 1,600 rupees ($23.31) per kg for the spice, the official said. This month, it paid 4,400 rupees per kg.
The production problems stem from erratic weather in the south Indian district of Idukki, which accounts for at least a sixth of the global production and about three-quarters of India’s small cardamom output.

Last year, massive rains killed over 50 people and destroyed the district’s farmlands. This year, a weak monsoon season has wiped small cardamom production, threatening the livelihoods of thousands of producers.

That has hit both supply and quality, but more crucially, sent the spot prices of small cardamom, already among the world’s priciest spices, to record highs on Mumbai’s Multi Commodity Exchange this month.

That spike is good news for traders but depleted stocks mean farmers are unable to capitalize on the rally, while the surge in costs has also hurt downstream demand.

Temples and state governments are among India’s largest buyers of cardamom, accounting for up to 35% of the market, said Jojo George, Managing Director of KCPMC.
“Somebody who was buying three tonnes or so earlier is now buying only one ton,” George said.

‘MAD CHEF’

Cardamom’s complex combination of flavors, including elements of mint, citrus and herbs, make it a popular ingredient in a wide range of dishes, both sweet and savory.

Koushik S., popularly known as the “Mad Chef”, said the spice is essential to Indian cooking and supply issues affect his work.

“Next year, availability will be a problem and we might have to import from Guatemala, but then the quality is inferior,” said Koushik, who is a well-known Indian TV chef and is also a consultant to restaurant chains.

Guatemala is the largest cardamom grower but supply to India from the Central American country is mixed with lower quality cardamom, according to research by the Netherlands Enterprise Agency.

Over the past three months, N Seetharam Prasad, the chef at the four-star GRT hotel in Chennai, has complained five times about the low quality of his small cardamom supplies.

He uses the spice to make everything from biryani, a fragrant rice dish that enjoys a cult status in the country, to tea and sweets.

“I will never compromise on the quality of ingredients and will look to buy elsewhere if I don’t get good cardamom,” Prasad told Reuters.

Idukki, a small land-locked mountainous region located near the southern tip of India, has historically been ideal for cardamom, which demands heavy rains to thrive.

 P.C. Matthew, a farmer who lives in India’s cardamom capital of Vandanmedu in Idukki, expects production to fall 50% from a normal year due to lower rainfall, and for the harvest to be delayed to October from early August.
While overall rainfall at local and national levels has not varied significantly over time, analysis shows the incidence of short spells of intense rain and lengthy periods of little or no rain has increased.

India, in its annual economic survey last year, attributed this to climate change, and said revenue in areas entirely dependent on rains could fall by close to a sixth.

The increasingly erratic weather patterns lift risks for the $400 billion farm economy and its hundreds of millions of farmers, only a small fraction of whom have crop insurance
Since the start of the century, Idukki’s cardamom regions have had seven lengthy dry spells, defined as periods of 100 days or more of no rain, said Muthusamy Murugan, the officer in charge of the state-run Cardamom Research Station in the district.

That compares with 15 such spells for the entire 20th century. He expects the region’s cardamom production to fall 40%.

“Prices will continue to rise in the long-term and we have reached this point because of climate change,” said Joychan Kannamunda, secretary of the Cardamom Growers Association.
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https://www.reuters.com/article/us-india-water-cardamom/prices-of-cardamom-queen-of-spices-soar-as-wild-weather-wipes-indian-production-idUSKCN1UC087

Reference: Today, 1 USD = 68.7891 INR


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India - Poor demand keeps pepper prices stable

Kochi  July 15, 2019

Despite the monsoon playing truant in the pepper growing regions, domestic black pepper prices remain more or less stable because of low demand in the upcountry markets.
The farm gate price of ungarbled black pepper is hovering in the range of INR 325-350 a kg since April-May, which was INR 30 lower than the corresponding period last year, which was INR370.
The current price trend is likely to continue for the time being, said Kishore Shamji of the Kochi-based Kishor Spices.


Poor offtake

Traders are stuck with stocks due to poor offtake.
Heat wave conditions in many parts of North India also slowed down the demand, he told BusinessLine.
Though flowering has happened in many of the growing regions, absence of rains has affected pollination which normally takes place through rain water.
As the crop is affected, farmers are hesitant to sell their stocks. This will have an impact on production this year, which is likely to be in the range of 47,000 tonnes as against 55,000 tonnes in the previous year.
“It may be further down next year. It is too early to predict. It all depends on the progress of monsoon in growing areas,” Shamji added.
Shamji also raised apprehension over the falling international prices as it may lead to flooding of cheap Sri Lankan pepper in the domestic market under ISFTA.
While the import of Vietnam pepper through Sri Lanka has come down due to strict vigil, the illegal pepper shipments through Nepal is on the rise, he alleged.

According to Rajiv Palicha, Chairman, All India Spices Exporters Forum, there is a disparity in prices between Vietnam Asta grade and Indian product, which is selling at $6,100/tonne against $2,500/tonne of Vietnam and Indonesia and $2,300/tonne of Brazil.
However, there is enough availability in the domestic market to meet the requirements of the industry.
International prices are now competitive because of the supply situation and it is opportune for Indian pepper industry to explore overseas markets, Palicha said. To achieve this, he said, productivity should improve and new farm technologies are to be adopted.

Higher output

Sources in the spice industry pointed out that the international prices are down due to higher production in many countries compared with India.
As per the available figures, the world pepper production is expected to reach over six lakh tonnes, which is higher by 8.25 per cent than the previous year.
According to sources, the prices in other countries are governed by international supply and demand, while in India, it is on account of the strong domestic market and the price of pepper is a standalone phenomenon here.

V Sajeev Kumar Kochi | Updated on July 15, 2019 Published on July 15, 2019
Source:
https://www.thehindubusinessline.com/markets/commodities/poor-demand-keeps-pepper-prices-stable/article28446620.ece


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IMPORT OF PEPPER BY GERMANY by IPC

IMPORT OF PEPPER BY GERMANY
 

Germany, Officially the Federal Republic of Germany is a country in Central and Western Europe, lying between the Baltic and North Seas to the north, and the Alps, Lake Constance and the High Rhine to the south. It borders Denmark to the north, Poland and the Czech Republic to the East, Austria and Switzerland to the south, France to the southwest, and Luxembourg, Belgium and the Netherlands to the west.

Germany includes 16 constituent states, covers an area of 357, 386 square kilometres and has a largely temperate seasonal climate. With 83 million inhabitants, it is the second most populous state of Europe after Russia. Germany was a founding member of the European Economic Community in 1957 and the European Union in 1993. Germany has the largest national economy in Europe which is also the world's fourth largest by nominal GDP. Germany is also the world's third largest exporter and importer of goods (based on CIA World Factbook). Furthermore, Germany is one of the countries in Europe that imports quite a lot of pepper from various pepper producing countries whether for its domestic consumption or for re-export.

In 2017, Germany was reported to have imported to have imported a total 32,189 Mt of pepper which 89% of it comprised of whole pepper while 3,481 Mt of it ground pepper. The average pepper import by Germany in 2017 was reported at 2,682 Mt per month with the highest quantity recorded in October with 3,685 Mt. The total expenditure of pepper import by Germany amounted to USD 211.1 Million, recording an average price of the total pepper imported by Germany at USD 6,443 per Mt for whole pepper and USD 4,225 per Mt for ground pepper.
Year 2018 saw pepper import by Germany decreased by 5% as compared to the previous year totalling at 30,562 Mt which comprised of 27,939 Mt of whole pepper and 2,623 Mt of ground pepper. The average pepper import by Germany was reported at 2,547 Mt per month which peaked in October with 3,949 Mt. In accordance with decreasing in term of quantity, the pepper imports by Germany also decreased by 41% in terms of value which amounted to USD 124.4 Million. The average of total pepper imported by Germany was reported to be at USD 3,892 per Mt for whole pepper and USD 5,971 per Mt for ground pepper which meant a loss of 40% and profit of 41% respectively as compared to the previous year.

Pepper import by Germany as of April 2019 was reported an increasing trend by recording an increased by 11% as compared with the same period in 2018, totalling 9,452 Mt which comprised of 8,702 Mt of whole pepper and 750 Mt of ground pepper. The total expenditure of pepper imports by Germany as of April 2019 decreased by 25% as compared to the previous year in the same period, totalling USD 32.2 Million.

The top five most of pepper imported by Germany both whole and ground as of April 2019 reported to come from Brazil with 4,887 Mt (an increase of 31% compared with the same period in 2018), Viet Nam with 2,670 Mt (an increase of 1%), Indonesia with 598 Mt (a decrease of 26%), India with 430 Mt (a decrease of 51%) and Sri Lanka with 294 Mt (an increase of 34%). The significant decreased of Germany pepper import from Indonesia and India could be contributed that Germany started to shift import from other origins countries such as Sri Lanka (an increase by 100 Mt as compared to the same period in 2018) and Cambodia (an increase by 71 Mt) which exported 194 Mt and 32 Mt respectively in the same period in 2018.

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IPC MARKET REPORT No. 28/19, 8 July - 12 July 2019

MARKET REPORT
Market this week showed mixed response.
In local market, Malabar black pepper was reported stable and relatively unchanged as compared to the previous week with an average of USD 4,874 per Mt.
India black pepper price in local currency was reported at INR 334 per Kg on Thursday.
Indonesia black and white pepper was also reported stable as compared to the previous week with an average of USD 2,054 per Mt for black pepper and USD 3,435 per Mt for white pepper. Indonesian black and white pepper in local currency trade an average of IDR 29,000 per Kg and IDR 48,500 per Kg respectively.
Malaysian black and white pepper was reported stable and relative unchanged as compared to the previous week, averaging at USD 2,476 per Mt for black pepper and USD 3,911 per Mt for white pepper.
Viet Nam black pepper was reported to be traded with a 1% deficit as compared to the previous week, averaging at USD 1,931 per Mt, whilst Viet Nam white pepper reported unchanged, averaging at USD 2,847 per Mt.
Sr i Lanka black pepper continued to traded negatively and was reported the lowest ever prices in recent years. Recording a 23% deficit as opposed to the previous week at an average of USD 2,069 per Mt.
China white pepper was reported stable as compared to the previous week averaging at USD 4,706 per Mt.

International Mkt
In international market, FOB price of India black pepper was reported stable as compared to the previous week at an average of USD 5,165 per Mt.
Indonesia black and white pepper was also reported stable as compared to the previous week with an average of USD 2,512 per Mt for black pepper and USD 4,060 per Mt for white pepper.
Malaysia black and white pepper were reported unchanged, averaging at USD 3,685 per Mt and USD 5,275 per Mt respectively.
Furthermore, Viet Nam black pepper 500 g/l, 550 g/l and Viet Nam white pepper were reported stable and relatively unchanged as compared to the previous week with an average at USD 2,309 per Mt, USD 2,374 per Mt and USD 3,459 per Mt respectively.
China white pepper was reported with a 4% increase as opposed to the previous week at an average USD 5,106 per Mt in the international market.

US market was reported stable and unchanged with Muntok spot price being reported at USD 5,072 per Mt.

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IPC MKT REPORT No. 27/19, 1 July - 5 July 2019

MARKET REPORT
Market in the first week of July 2019 showed mixed response albeit slightly negative.
In local market, Malabar black pepper was traded with a 2% deficit as compared to the previous week with an average of USD 4,879 per Mt.
India black pepper price in local currency was reported at INR 336 per Kg on Thursday.
Indonesia black pepper was reported stable, whilts Indonesia white pepper was reported to be traded with a deficit by 1% as compared to the previous week. Averaging at USD 2,052 per Mt for black pepper and USD 3,431 per Mt for white pepper. Indonesian black and white pepper in local currency were traded at an average of IDR 29,000 per Kg and IDR 48,500 per Kg respectively.
Malaysian black and white pepper was reported stable and relatively unchanged as compared to the previous week, averaging at USD 2,475 per Mt for black pepper and USD 3,908 per Mt for white pepper.
Viet Nam black pepper was reported to be traded with a slight 1% deficit as compared to the previous week, averagi ng at USD 1,945 per Mt, whilst Viet Nam white pepper reported unchanged.
Sri Lanka black pepper continued to be traded negatively and was reported with the lowest ever prices in recent years. Recording a 5% deficit as opposed to the previous week at an average of USD 2,681 per Mt. China white pepper followed the negative trend and was traded with a 2% deficit.

In international market, FOB price of India black pepper was reported with slight deficit of 1% as compared to the previous week at an average of USD 5,169 per Mt.
Indonesia black pepper was reported stable with an average of USD 2,509 per Mt whilst Indonesia white pepper was reported to be traded with a 1% deficit as compared to the previous week.
Malaysia black and white pepper were reported unchanged, averaging at USD 3,685 per Mt and USD 5,275 per Mt respectively.
Furthermore, Viet Nam black pepper 500 g/l, 550 g/l and Viet Nam white pepper were reported with a 1% deficit as opposed to the previous week with an average USD 2,315 per Mt, USD 2,380 per Mt and USD 3,465 per Mt respectively.
China white pepper was reported with a 2% deficit as opposed to the previous week at an average USD 4,921 per Mt in the international market.
US market was reported stable and unchanged with Muntok spot price being reported at USD 5,072 per Mt. 

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