BLACK PEPPER REPORT - HIGHLIGHT ON BRAZIL FEB 2020

Production and Productivity

Brazil, known as one of the major pepper producing countries which is famous for its Black Pepper, is known to have a more competitive price as opposed to other origins. In recent year, Brazil has also surpassed Indonesia as the second largest pepper producer in the world with estimated quantity of 80,000 Mt in 2019. Brazil's increase of production could be contributed to the output of the first harvest of new plantation planted in 2017.

During 2008-2020 the area under pepper cultivation in Brazil had fluctuated. Between 2008-2013, area under pepper cultivation in Brazil saw a decrease by 37% to a total of 18,472 Ha from 29,549 Ha in 2008. The area under pepper cultivation in Brazil saw an increasing trend during 2013-2018 with an increase of 65% to a total of 30,503 Ha. In the course of 11 years between 2008-2018 total area under pepper cultivation in Brazil recorded an increase by 3% (Table 7). Furthermore, in 2019 the area under pepper cultivation in Brazil was estimated to increase by 2% as compared to 2018 to a total of 31,040 Ha. Whilst, for the year 2020 the area of pepper cultivation was projected to decrease by 1% as compared to 2019. The decrease of area under pepper cultivation in Brazil could be contributed to farmers in the last two years have stopped expanding new plantation in Para Region and Espirito Santos Region which are the main producer of pepper in Brazil.

Brazil production of pepper during 2008-2020 was reported fluctuating with a rather positive trend. In the course 11 years since 2008 pepper production in Brazil was reported to have recorded an increase of 76% as it recorded a total of 72,000 Mt in 2018 which comprised of 68,500 Mt of black pepper and 3,500 Mt of white pepper. The highest production of Brazil pepper In the course of 11 years between 2008-2018 was reported in 2018 with 72,000 Mt whilst the lowest production occurred in 2012 with 32,000 Mt. However, in the year 2019 production of Brazil pepper was estimated to increase by 11% when compared with 2018 to a total of 80,000 Mt which comprised of 76,000 Mt of black pepper and 4,000 Mt of white pepper. Furthermore, in relation to the decrease of the area under pepper cultivation as well as the lack of care for pepper plantation by farmers, in 2020 Brazilian pepper production was projected to decrease by 3% when compared to 2019 to a total of 78,000 Mt.

Pepper productivity in Brazil In the course of 13 years between 2008-2020 was reported to be fluctuated with a rather positive trend. During 2008-2020, the lowest pepper productivity in Brazil was reported in 2008 with 1,388 Kg per Ha while the highest productivity was reported in 2019 which was estimated at 2,577 Kg per Mt. The lowest decrease of pepper productivity in Brazil was reported to occur in 2016 as it recorded a 19% loss when compared with the previous year. Whilst the highest increase of pepper productivity was reported in 2017 which recorded a 45% increase as opposed to the previous year. For the year 2019, Brazil pepper productivity was estimated with an increase of 9% to 2,577 Kg per Ha whilst in 2020 Brazil pepper productivity was projected with a slight decrease by 1% to 2,541 Kg per Ha .


Pepper Export from Brazil

Brazil, known as the second largest pepper producer in the world, had managed to take the second largest pepper exporter position from Indonesia in 2017. Since 2008 until 2019 there had been a significant increase of 131% or 48,091 Mt in the quantity of pepper export from Brazil which was mainly dominated with black pepper as it contributed to 94% of the total export figures (Table 8). The highest pepper export occurred in 2019 with 84,676 Mt whilst the lowest export occurred in 2012 with 29,129 Mt. In 2019, pepper export from Brazil was reported at 84,676 Mt, an increase by 17% as opposed to the previous year. Furthermore, as of February 2020, pepper export from Brazil was reported at 15,922 Mt which comprised of 15,285 Mt of black pepper and 637 Mt of white pepper, thus, recording a decrease of 8% as compared to the same period in 2019.

The number of pepper exports from Brazil had reportedly fluctuated in the last 14 months. The total export by Brazil in the past 14 months was reported at 100,597 Mt with total value as high as USD 210.4 Million. The average pepper export from Brazil was reported to be 7,186 Mt per month. The highest pepper export of Brazil occurred in October 2019 which reached 11,119 Mt whilst the lowest was reported in July 2019 with 3,046 Mt . The high level of exports during that period (October) correlated closely to Brazil harvest season.

Pepper from Brazil is exported to various countries in Asia, Europe, America and Africa (Table 10). During January 2019-February 2020, the top 10 country of destinations for Brazilian pepper were reported to be Viet Nam with 17,517 Mt (Contributed to 17% of the total pepper export during January 2019-February 2020), Germany with 13,127 Mt (13%), United States of America with 10,294 Mt (10%), Morocco with 7,817 Mt (8%), Egypt with 6,581 Mt (7%), India with 5,791 (6%), Mexico with 4,554 Mt (5%), Pakistan with 4,301 Mt (4%), United Arab Emirates with 3,779 Mt (4%) and France with 3,272 (3%).


Pepper Export Price

Brazil pepper export price had fluctuated significantly in the past three years which could be attributed to the world supply of pepper significantly exceeding the global demand. In 2018, the average pepper export price for Brazil was reported at USD 2,835 per Mt with the highest prices recorded in January with USD 3,509 per Mt whilst the lowest price was reported in November with USD 2,195 per Mt. In 2019, Brazilian average pepper export price was reported at USD 2,148 per Mt, recording a decreased of 24% as compared to 2018. In 2019, the highest average price was reported to have reached USD 2,316 per Mt (July 2019) whilst the lowest average price was reported in November with USD 2,002 per Mt. As of February 2020, the average pepper export price for Brazil was reported at USD 1,940 per Mt, recording a 12% decreased as compared to the same period in 2019


THIS REPORT PUBLISHED BY IPC
Basic information provided by Coreimex and CSG Trade

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IPC MARKET REVIEW - February 2020

PRICE HISTORY

As the outbreak of Corona Virus continued affecting around 109 countries all over the world with a death toll reaching 3,831 cases (as of 09 March), pepper price index for the 2th month of 2020 was reported with a negative outlook. The price index of black pepper for February was reported with a major decrease of 11.4% as compared with the previous month at 30.30 point (Table 1). In addition, when compared with February 2019, the price index of black pepper experienced 7% loss. Following the same trend, the price index of white pepper for February 2020 was also reported with a significant decrease as it recorded a 6.9% decrease as compared with previous month at 32.36 point. In comparison with the same period in 2019, the price index of white pepper experienced a more significant decrease by 13%.


In the 2th month of 2020, the composite price for both black and white pepper was reported with a negative outlook. Composite price of black pepper in February was reported at USD 2,254 per Mt, recording USD 290 per Mt loss as compared with January. Aligned with composite price of black pepper, composite price of white pepper was also reported with a rather significant loss as it dropped to USD 3,349 per Mt. Thus, recording USD 249 per Mt loss as compared with the previous month.


Pepper prices in the 2nd month of 2020, showed a negative outlook with Viet Nam origin recorded the highest decrease as opposed to the previous month. The farm gate price of black pepper in India was reported with a decrease by 3% as opposed to January, averaging at USD 4,390 per Mt (Table 3). In the local currency farm gate price of India black pepper was traded at an average of INR 313 per Kg. The decrease of India black pepper price could be contributed to the harvest season currently in full swing as well as the depreciation of Indian Rupee against US Dollar.

The price of black pepper in Indonesia (Lampung black pepper) was reported with a decrease by 3% as opposed to the previous month, averaging at of USD 1,742 per Mt. The decrease of Indonesia black pepper could be contributed to the sluggish demand and the weakening of Indonesia's local currency against the US Dollar (IDR 13,776 for USD 1). In local currency, the price of Indonesia black pepper decreased to an average of IDR 24,000 per Kg from IDR 24,614 per Kg

In February 2020, the farm gate price of Malaysia's black pepper was reported with a decrease by 4% as compared to the previous month, averaging at USD 1,800 per Mt. The decrease of Malaysia black pepper could be contributed to the decrease of pepper price in local currency and the weakening of Malaysia's local currency against the US Dollar (MYR 4.16 for USD 1) or a depreciation by 2% when compared with the January. In local currency, the price of Malaysia black pepper decreased to an average of MYR 7,490 per Kg from MYR 7,621 per Kg.

Furthermore, farm gate price of black pepper in Viet Nam was reported to have decreased by 6% as opposed to January averaging at USD 1,613 per Mt. The decrease of Viet Nam black pepper price could be contributed to the harvest season currently in full swing. In local currency, the price of Viet Nam black pepper decreased to an average of VND 38,500 per Kg from VND 40,875 per Kg.

Sri Lanka black pepper was reported with a staggering 11% deficit as opposed to January and was reported at an average of USD 2,931 per Mt. The decrease of Sri Lanka black pepper could be contributed to sufficient stock following end of harvest in January. In local currency, the price of Sri Lanka black pepper decreased to an average of LKR 531.92 per Kg from LKR 586.72 per Kg.

BLACK PEPPER
FOB price of black pepper for February 2020 also showed a negative outlook with only Malaysia origin was reported stable. India was reported with the same 3% decrease when compared to the January, averaging at USD 4,670 per Mt (Table 4). Furthermore, the FOB price of black pepper in Indonesia was also reported with a decrease by 2% as opposed to January, averaging at USD 2,161 per Mt. FOB price of Malaysian black pepper was reported stable at an average of USD 3,685 per Mt. Furthermore, FOB price of Viet Nam black pepper 500 g/l and 550 g/l were reported with a significant decrease by 16% and 14% respectively as compared to the previous month at an average of USD 1,964 per Mt and USD 2,060 per Mt respectively.

WHITE PEPPER
Farm gate prices of white pepper in February 2020 also showed a negative outlook (Table 5) as only Indonesia origin was reported stable. Indonesia Muntok white pepper was reported stable at average of USD 3,122 per Mt. In local currency, the price of Muntok white pepper was reported at an average of IDR 43,000 per Kg. Farm gate price of Malaysia white pepper was reported with a decrease by 3% as opposed to January at an average of USD 3,211 per Mt. Furthermore, Viet Nam white pepper was reported with a significant decrease by 8% when compare to the previous month, averaging at USD 2,409 per Mt. China market continued to be reported inactive in February as no business took place due to the outbreak of Corona Virus.


FOB price of white pepper showed a rather stable outlook with only Viet Nam origin was reported with a decrease. FOB price of Indonesia white pepper for February 2020 was reported stable, averaging at USD 3,716 per Mt. Furthermore, FOB price of Malaysia white pepper continued to be reported stable and unchanged. Whilst, FOB price of Viet Nam white pepper was reported with a significant dropped of 12% at an average of USD 3,069 per Mt .

 

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#Coronavirus impact: Global pepper market witnessing a grim scenario

Rajesh Ravi |
March 18, 2020
Global pepper market is witnessing a grim scenario with no demand seen in the past two weeks as the coronavirus outbreak impacts its prices in Europe and the US, bringing down by 6-8 % in 2020. This could fall further with COVID-19 as it spreads to key markets of the US and Europe.

Jojan Malayil, chief executive officer of Kochi-based Bafna Enterprises, said the situation was very grim and buyers were not even asking for the rates.
“There is an extreme fear in the market and our regular buyers are in the wait and watch mode. Suppliers of spices in the US market fear a drop in demand if the disease spreads to more cities and people. Prices could drop further if the situation continues like this,” he said.

Jojan said Vietnam was offering American Spice Trade Association (ASTA) grade pepper for $1,950 per tonne, while Brazil and Indonesia are quoting lower than that. However, Rajiv Palicha of Nedspice India told FE that there was not much disruption in pepper trade except in container movements slowing down due to problems in China. “Prices of all spices have declined 8-10% and arrival of the new crop in pepper has added to the pressure. There is a slight slowdown in demand from China and Italy but overall, the trade has not seen big disruptions,” he added.

Pepper Crop Report by Nedspice in January 2020 reported that new crop arrivals were expected to peak between February and April putting further pressure on pepper prices over the upcoming months. The report added global production was estimated to drop by 12% this season, but the overall stocks were expected to be still well above the total market demand.

Palicha said domestic demand for pepper and trade has not so far been disrupted due to the virus outbreak. India is the largest consumer of pepper in the world and the second largest producer after Vietnam. Traders believe that a revival in Chinese demand could help support pepper prices to a certain extent in the short run.



Published: March 18, 2020 3:00:05 AM
https://www.financialexpress.com/market/commodities/








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#NEPAL - Low big cardamom prices worry farmers

PANCHTHAR, March 17: Til Bikram Nembang of Phaktep in Phalgunanda Rural Municipality has not sold his harvested in August last year. He has been storing the processed big cardamom waiting for the price of the cash crop to go up. But there is no sign of the price going up even though new harvesting season is approaching nearer.

"I have invested huge amount of money in cardamom farming. The production was also good, but I am not getting reasonable price," said Chemjong. “The price offered by buyers is so low that I can't even recoup by investment."

Chemjong has eight quintals of big cardamom in stock.

Santosh Kambang of Linkhim of Taplejung has a different story to share. He has given up big cardamom farming, and is cultivating maize instead. "I had started big cardamom farming in paddy field sprawled over 12 ropani. As I cannot earn enough money to pay laborers, I am giving up big cardamom farming," he added. "Not only me, most of the farmers in our locality are reverting to traditional crops like maize and paddy."

According to Kambang, farmers of Phurambhu, Linkhim and Phawadin have quit big cardamom farming and focusing on traditional crops like maize and paddy.

For many years, big cardamom was a major cash crop for farmers of eastern mountain districts. The crop brought different economic benefits to many farmers of the area. But in recent years, earnings have remained far below their expectations. Traders are offering farmers Rs 30,000 per 40 kg of big cardamom. The crop fetched price of as high as Rs 110,000 per 40 kg some years ago. Many farmers say return from big cardamom farming these days is lower than what farmers invest.

Khem KC, who is involved in farming and trade of big cardamom, told Republica that earnings from big cardamom in the past was so good that farmers were educating children in good schools and even buying land and houses. "But the prices have been falling for the past two-three years," added KC.

According to Narendra Adhikari, central vice-chairperson of Big Cardamom Entrepreneurs Federation, the price of cardamom was Rs 23,000-Rs 25,000 per 40 kg on Sunday. "Many farmers have stored big cardamom in their houses hoping for the prices to go up. I think there is no demand in India right now due to coronavirus outbreak," he added. "Maybe we are not getting good prices because production has increased in Bhutan and India itself."

Big cardamom farming is down in more than 42 districts of Nepal. Taplejung, Sankhuwasabha, Panchthar, Ilam, Dhankuta, Tehrathum and Khotang are the major producers of Province 1.

According to Department of Agriculture, big cardamom farming is done in 12,120 hectares of land in Nepal including 11,300 hectares in Province 1. As India is the main market for big cardamom grown in Nepal, its price is determined by Indian traders.

Published On: March 17, 2020 11:01 AM NPT By: Giriraj Baskota
For https://myrepublica.nagariknetwork.com/news








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#CORONAVIRUS - UPDATES

# CORONAVIRUS - UPDATES

INDIA #Cardamom Price Falls Due to Week-Long Holiday

10 March, 2020  
Due to the week-long holiday in many North Indian markets on account of Holi festival, cardamom sales got affected. Besides, price fluctuations in the past one week kept the buyers away. Moreover, the harvest is not over in plantations and sufficient stocks are still available.
Lack of buyer support and subdued upcountry demand dragged cardamom prices down by Rs. 200 a kg at Puttady auctions.

Above all, forecasts on likely summer rains this week in growing regions has affected market sentiments, as intermittent showers would give more yields. There was not much buying by exporters as they seem to be in wait-and-watch mode for a further price drop, traders said.

The auctioneers KCPMC offered 37.23 tonnes in 180 lots. The average price realized was only Rs.2,745 per kg. According to traders, the market is likely to be stable as major buyers have come forward to participate. With the conclusion of the harvest season, traders are worried about the inferior quality of capsules coming from the plantations.
Meanwhile, there was no trading session in the afternoon as poor arrivals forced auctioneers to cancel the auctions.

Trade analysts Acumen Capital Markets said cardamom March futures fell by 3.6 percent or Rs.103.7 to Rs.2,785.6 at close.


By: Chander Mohan
https://krishijagran.com/commodity-news









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#PEPPER MARKET UPDATE 9TH MARCH 2020 – WEEK 11

Vietnam has exported roughly 25,600 tons of pepper in February, bringing the total pepper exported in the last 2 months to 40,600 tons, an increase of 11% compared to the first 2 months of 2019. We forecast March the total export volume will be easy to reach from 32 to 35,000 tons. All details data that we will collect and send you within next week.

Under the influence of #Corona Virus, the pepper market in Vietnam has had certain effects when prices decreased slightly over the weekend due to low demand and psychological factors affecting commodity prices. Furthermore, almost exporters covered enough raw material for Feb/First week March shipment and now keep sidelined.

After easier tone, the market has shown signs of recovery with some demand from India/Nepal and Eastern Europe. The USA market also recorded some demand for further shipment from June to December. However, business were slow due to collector/exporters/speculator prefer to offer promptly shipment and hesitating to offer full year shipment. In contrast to many other countries, Vietnam currency has strengthened against the USD and expected to continue until the second quarter of 2020 (equivalent to a price increased of about 10$/Mt).

China It seems has better control of the disease and we hope the situation will settled down soon. Border traded still tight and under strict control with costly. However, likely demand are returning soon. China reported trading its white pepper internationally with an average of USD 4,375 per Mt.

India as the harvest come to full swing Malabar black pepper was traded with a 4% discount on the price as compared to the previous week, averaging at USD 4,203 per Mt. Currency depreciation than USD from  last week.

Indonesia black and white pepper also down around 1 and 2% respectively at an average of USD 1,684 per Mt for black pepper and USD 3,053 per Mt for white pepper. Indonesian Rupiah also weakening than USD with 2% depreciation.

Malaysian an increase of 1% as opposed to the previous week, averaging at USD 1,767 per Mt for black pepper and USD 3,172 per Mt for white pepper.

Sri Lanka was also reported steady at an average of USD 2,937 per Mt.

Brazil market we heard continue firm and less offer from farmers/collectors. USD stronger against with Real.

 









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#PEPPER #INDIA - Pepper imports from Brazil worry Indian growers

Kochi March 03, 2020

 #Coronavirus
Spice meet put off on virus scare

Pepper farming community has voiced concern over the presence of Brazilian pepper in India. It is reported that markets in Rajasthan, Gujarat, Delhi and Maharasthra are getting Brazilian pepper for re-export at ₹340 +GST paid and freight delivered at the buyer’s doorstep.
The price of Indian pepper comes to around ₹360. Traders claim Brazilian pepper has 600 gm/litre bulk density.

According to Kishore Shamji of Kishor Spices, pepper farmers are worried over the new entrant into the Indian markets, which is selling below the Vietnam pepper prices. The latter rules at $2,000 per tonne against the Brazilian pepper’s $1,800-1,900. It is estimated that over 600 tonnes of Brazilian pepper were imported into the country during December and January.

Normally, Vietnam bolder berries would slip into the domestic market as No 13 quantity that had snatched away Wayanadan and Karnataka pepper share from the domestic market.

Meanwhile, pepper prices in Kochi were down by ₹1 per kg with limited sellers from Kerala. The arrivals in the market was lower at 13 tonnes. The average price realised for ungarbled varieties was ₹308 per kg, while MG1 garbled stood at ₹328. New pepper was quoted at ₹298.
However, traders expect arrivals to pick up in the coming days, mainly from Wayanad and Karnataka, to be followed by Tamil Nadu.

Meanwhile, the coronavirus scare has forced organisers in Kochi to postpone the International Spice Conference 2020 slated to be held from March 8 to 11.
The organisers pointed out that many of the delegates from countries such as Italy, Europe, West Asia have informed their inability to attend the meet.

V Sajeev Kumar
The HinduBusinessLine

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#PEPPER #INDIA - Limited offtake drives pepper prices down

Kochi  March 02, 2020

Limited offtake by end-users and improved arrivals hammered pepper prices down by ₹8 a kg in Kochi last week.

The market was also down by ₹1 on Monday on the arrival of 72 tonnes and the average price realised was ₹309 for ungarbled varieties. MG1 garbled variety was quoted at ₹329, while new pepper stood at ₹299.

According to Kishore Shamji of Kishor Spices, pepper from Coorg and Wayanad with moderate demand from end-users was sold. Dealers from Delhi, Uttar Pradesh and Madhya Pradesh were not buying because of riots in the capital city.

However, cold conditions in northern India is keeping demand stable. Consumption in the domestic market has gone up to 5,000-6,000 tonnes a month, which could be met by domestic production, he said.

Shamji said imports from Sri Lanka have come down to 69 tonnes in January. February figures are yet to be known. However, traders voiced concern over the reported move by Sri Lanka and Vietnam to impress upon Indian government to withdraw the minimum import price imposed on pepper, which would enable these countries to dump their produce in the domestic market.

Though arrivals from Karnataka and Wayanad have picked up, traders said availability of Karnataka pepper was limited with good buying interest for pepper with bulk density above 550gm per litre.

A section of the trade speculates that the market is likely to drop to ₹250 per kg in Rajasthan and Madhya Pradesh on higher production, Shamji said.

V Sajeev Kumar
The HindubusinessLine

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Festival season in Gulf perks up cardamom demand

Kochi March 02, 2020

Declining prices and the ensuing Ramadan demand seem to have prompted overseas buyers of cardamom. This is evident from the procurement of 25 per cent of the commodity by exporters, out of the 32 tonnes offered in the morning auctions at Bodinayakanur on Monday.

The recent price drop is an opportunity to explore the Gulf markets. With rates coming down, the price difference with the Guatemalan variety in the Gulf markets is now $5 per kg as against $10 earlier, traders said, adding that the downward price trend is expected to provide market stability and fetch more export revenue.
Cardamom exports from India up to December was only 500 tonnes because of high prices of the commodity as against 1,300 tonnes in the previous year, they said.

The surge in export demand can be linked to dropping prices and the upcoming festival season in GCC countries. Since the festival period this year falls in May, exporters would start procuring the commodity in March and April. Indian capsules are in great demand in Gulf countries because of its superior quality.

Few export, sub-suppliers and direct exporters have participated in today’s auctions, which indicates there is some renewed demand in the Gulf countries. Some shipments were sent last week, which will reach the Gulf coasts in mid-March. There is still not much stock available to fulfil the seasonal demand. As a few countries are facing Coronavirus threat, it may affect shipments, an exporter said.

Iran, one of the active markets for Indian cardamom, may not be active until the situation improves. Kuwait seems to be very active, especially after the Gulf Food Expo, preferring the Indian commodity to the Gautemalan, the exporter said, adding that there is a likely shortage of crop from Guatemala because of drought.
Arrivals in the auctions have shown sizeable improvement at 79.5 tonnes and the average price realisation was ₹2,985.

V Sajeev Kumar
The Hindu Business Line

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PEPPER MARKET UPDATE 2ND MARCH 2020 – WEEK 10

Vietnam pepper price has increased by 10% in the past two weeks. The price of material from the VND 36,500 has increased to VND 40,000 today. Despite being in the harvest season, raw material prices continue to rise steadily due to the following main reasons;

- At these level, many farmers are at a loss, almost all consider storing pepper. Farmers and domestic agent prefer to sell other agricultural products like Coffee to cover temporary costs and store as much pepper as possible. As their perspective, pepper is the most attractive to invest compared to other agricultural products.

- Pepper price is at low level, it has stimulated many exporters/agents to buy stocks. Especially, there are large enterprises with FDI capital actively participating and pushing the market up sharply in the past week. Pepper harvesting fully swing in all area in Vietnam however it is not easy to buy large quantities from last week.

- Although cross-border transactions with China are still very difficult and costly, there have been some Chinese businessmen buying and stockpiling in Vietnam. They feeling pepper price was good and waiting for better clearance opportunities. It’s stimulated the market to increased until now.

- Several exporters are big short and have to buying raw material in secret for the ordered in the first quarter 2020.

China The situation of Corona Virus has been better controlled and real demand is gradually returning to the border. However, customs clearance is still slow due to many procedures and costs.

India In local market, Malabar black pepper was traded with a 2% deficit as compared to the previous week, averaging at USD 4,372 per Mt.

Indonesia black and white pepper were reported with a 2% deficit respectively when compared to the previous week.

Malaysian black and white pepper were also traded domestically with a 2% and 1% deficit respectively as opposed to the previous week.

Sri Lanka black pepper was reported steady at an average of USD 2,929 per Mt.

Brazil  Continue to offer competitive prices but not much quantity. The Brazilian currency, which has depreciated against the US dollar by more than 10% since january, has also kept Brazil pepper prices at low level. However, we would not be surprised if the Brazilian market continues to increase follow Vietnam.

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#CARDAMOM - India - Cardamom exporters looking to tap Gulf markets

February 26, 2020

The subdued demand for Indian cardamom in the just concluded Gulf Food Expo has not deterred exporters from trying to tap the burgeoning Gulf markets. They are pinning hopes on the ensuing Ramadan festival season in April, which they expect to perk up demand.

However, the higher price of Indian cardamom over the Guatemalan varieties is causing concern among exporters. Though the price of export grade Indian cardamom has started receding from $58-$60 to $50-52 per kg, the Guatemalan crop is available in the range of $38-42, said Dhanavanthan Murugesan, Mercariex Worldwide, a cardamom exporting firm based in Bodinayakanur.

He pointed out that the export price in the last 10 days has remained stable and importers are waiting for a further decline in domestic price. The Indian commodity can take advantage of the anticipated shortfall of Guatemalan cardamom in the September 2020 harvest.

Indian cardamom is the most preferred variety in the Gulf markets and the active overseas markets are Dubai, Kuwait, Iran, Iraq, Jordan, Bahrain, Turkey, Canada and some European countries. However, the higher prices due to lower domestic production have given a competitive advantage to the Guatemalan crop. Many Gulf importers prefer Indian cardamom because of its quality, Murugesan said.

Saudi Arabia is a major buyer of Indian cardamom, but restrictions over pesticide residues have impacted export to that country in the last two years.

S.B.Prabhakar, a leading planter in Kerala’s Idukki district, said the Guatemalan crop shortfall is around 40 per cent this season due to drought. Moreover, the prices have doubled there and it will remain firm to bullish in the short term.

According to traders, only 10 per cent of the total production is exported now as against 15-20 per cent a few years ago. In value terms, cardamom exports have halved to ?500 crore this year from ?1,000 crore last year.

However, traders expressed the hope that the control on pesticides residues in several plantations would help achieve a good crop in the coming season. Farmers are now adopting better agricultural practices.


Ajith BK, Secretary, Association of Planters of Kerala, said large growers have already taken precautions on the usage of pesticides. Prices in the domestic market have been showing a declining trend for the last two months.

V Sajeev Kumar  Kochi | Published on February 26, 2020

https://www.thehindubusinessline.com/

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#Cardamom -Cardamom prices stable at Bodinayakanur auctions

Published on February 25, 2020

Cardamom prices remained stable on Tuesday at Bodinayakanur because of more active participation.

According to traders, upcountry buyers are keenly assessing market sentiments even though they have not yet started procurement in a big way. Liquidation of some of the high-priced inventory also helped bring stability to the market.

Contrary to weather forecasts, plantations have not received any showers in the last few months. Small and marginal farmers are facing acute water shortage in the region, traders said.

Any rise in prices is likely to depend on the summer rains. Delay in summer showers and the intensity of the summer will drive up prices, traders said.

The total quantity offered in the auction was 43.5 tonnes, which recorded a combined average price of R$2,745. In the morning session, Cardamom Growers Federation offered seven tonnes, in which 6.3 tonnes realised an average price of R$2,720.68. The highest price quoted for selected lots was R$3,276.

The offer made by KCPMC in the afternoon trading session was 36.5 tonnes, in which 35.9 tonnes realised an average price of R$2,769.32. The highest price quoted for selected lots was R$3.266.


According to trade analysts Acumen Capital Markets, the March futures fell by 3 per cent or R$89 to R$2,879.30 when last traded on Monday.

V Sajeev Kumar  Kochi | Published on February 25, 2020

https://www.thehindubusinessline.com/

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IPC SPECIAL ISSUE ON CLOVES - FEBRUARY, 2020 -FINAL

PART 2 - FINAL

#CLOVES #INDONESIA EXPORT FIGURES, PRICES


As the top producers of cloves in the world, Indonesia actively exports cloves to various countries. In 2017, Indonesia was reported to have exported a total of 9,089 Mt of cloves from which 95% or 8,675 Mt of it comprised of whole cloves and 5% or 414 Mt of it ground cloves. Indonesia on average exported a total of 757 Mt per month which peaked in February with 1,484 Mt. The total revenue of Indonesia’s export of cloves in 2017 was reported to be as high as USD 28.9 Million. Thus, recording an average price of the total cloves exported by Indonesia at USD 3,104 per Mt for whole cloves and USD 4,823 per Mt for ground cloves.
Year 2018 saw an increase in term of quantity of cloves exported by Indonesia. Indonesia was reported to have exported a total of 20,246 Mt of which 95% or 19,183 Mt of it comprised of whole cloves and 5% or 1,063 Mt of it ground cloves, recording a total increase of 123% when compared with 2017. The average export of cloves by Indonesia in 2018 was reported to be at 1,687 Mt per month which peaked in November with 5,132 Mt. In accordance with increasing in terms of quantity, Indonesia’s revenue from cloves export was reported to have increased by 252% to a total of USD 101.7 Million as compared to the previous year. Thus, recording an average price of the total cloves exported by Indonesia at USD 4,995 per Mt for whole cloves and USD 5,581 per Mt for ground cloves or an increase of 61% and 16% respectively as compared with 2017.

In 2019, Indonesia was reported to have exported a total of 25,990 Mt of which 96% or 24,971 Mt of it comprised of whole cloves and 4% or 1,019 Mt of it ground cloves. Thus, recording a total increase of 28% when compared to 2018. By the end of 2019, the total revenue of cloves export by Indonesia was reported to have reached USD 111.5 Million, recording an increase of 10% as compared to 2018. The average price of the total cloves exported by Indonesia in 2019 was reported at USD 4,289 per Mt for whole cloves and 4,346 per Mt for ground clovesor a decrease by 14% and 22% respectively as compared with 2018.

Furthermore, in the past three years export of cloves and pepper by Indonesia had been reported with an increase. Although Indonesia is the world largest cloves producer in the world, export quantity and value of cloves from Indonesia was reported to be inferior to pepper export. The total quantity of cloves export in the past three years was reported at 55,326 Mt whilst the total quantity of pepper export was reported with 142,082 Mt. Thus, recording the annual ratio quantity of Indonesia export between cloves and pepper during 2017-2019 at 1:5, 1:2 and 1:2 respectively. The total value of cloves export in the past three years was reported as high as USD 242.2 Million whilst the total value of pepper export was reported as high as USD 535.7 Million. Thus, recording the annual ratio value of Indonesia export between cloves and pepper during 2017-2019 at 1:8, 1:1 and 1:1 per year respectively

During 2017-2019, the average export price of cloves for both whole and ground by Indonesia had fluctuated (Table 8). In 2017, the average export prices of cloves by Indonesia was recorded at USD 3,263 per Mt for whole cloves and USD 6,780 per Mt for ground cloves. The highest average export price of cloves from Indonesia in 2017 was recorded in September with USD 5,439 per Mt for whole cloves and in November with USD 15,452 per Mt for ground cloves whilst the lowest average export price was recorded in June with USD 1,635 per Mt for whole cloves and in March with only USD 922 per Mt for ground cloves.

Year 2018, saw an increase in the average export price for both whole and ground cloves by Indonesia, the average export prices of whole cloves by Indonesia was reported at USD 5,062 per Mt for whole cloves and USD 9,008 per Mt for ground cloves. Thus, recording an increase of 55% and 33% respectively when compared to 2017. The highest average export price of cloves from Indonesia in 2018 was recorded in February with USD 6,256 per Mt for whole cloves and USD 28,845 per Mt for ground cloves which also occurred in the same month. Whilst, the lowest average export price was recorded in May with USD 3,506 per Mt for whole cloves and in April with USD 2,080 per Mt for ground cloves.

Contrary with 2018, the average export prices of cloves by Indonesia in 2019 saw a decreasing trend. The average export prices of whole cloves by Indonesia was reported at USD 4,333 per Mt for whole cloves and USD 4,526 per Mt for ground cloves.Thus, recording a decrease by 14% and 50% respectively when compared to 2018. The highest average export price of cloves by Indonesia in 2019 was recorded in June with USD 5,248 per Mt for whole cloves and in December with USD 10,714 per Mt for ground cloves. Whilst, the lowest average export price of cloves was recorded in December with USD 3,538 per Mt for whole cloves and in November with only USD 975 per Mt for ground cloves

Cloves export by Indonesia was reported to be shipped through ports and airports all over the Indonesia such as Java, Sumatera, Sulawesi and Bali (Table 9). Based on the port of origin, the top five origins for cloves export by Indonesia in 2019 were reported to be Port of Tanjung Perak, Surabaya with 23,108 Mt (contributed to 89% of the total export from Indonesia), Port of Tanjung Priok, Jakarta with 1,204 Mt (5%), Port of Tanjung Emas, Semarang with 985 Mt (4%), Port of Belawan, Medan with 304 Mt (1%) and Port of Panjang, Lampung with 232 Mt (1%). Furthermore, cloves export from Indonesia was also reported to be flown through airport such as Juanda (Surabaya), Ngurah Rai (Bali), Soekarno-Hatta (Jakarta) and Kuala Namu (Medan) though its quantity was insignificant when compared to quantity of cloves export through the ports.

Cloves from Indonesia are globally traded in Asia, America, Africa and European Countries (Table 10). In 2019, Indonesia’s top 5 Country of destinations for its cloves were reported to be India with 9,638 Mt (an increase of 115% as compared with 2018), Viet Nam with 2,158 Mt (a decrease of 59%), Saudi Arabia with 2,100 Mt (an increase of 17%), United Arab Emirates with 1,820 Mt (an increase of 125%) and Pakistan with 1,559 Mt (an increase of 2%). In terms of value, Indonesia’s top 5 contributors for its cloves export revenue were reported to be India with USD 34.8 Million, Saudi Arabia with 12.3 Million,United Arab Emirates with 8.6 Million, Singapore with USD 8.2 Million and Pakistan with 7.0 Million

Farm gate price of cloves in Indonesia in the first quarter of 2019 fluctuated with a rather negatively outlook (Table 12). During that period, in several regency of cloves producer, clove farm gate price was reported to have recorded the highest price with IDR 100,000 per Kg (USD 7.0 per Kg) in January and February at Bima Regency and in January at Cianjur Regency, whilst the lowest price occurred in February at Ende Regency with only IDR 79,000 per Kg (USD 5.6 per Kg). Furthermore, the average farm gate price of cloves in most regions in Indonesia during January-April 2019 was recorded at IDR 85,139 per Kg (USD 6.02 per Kg).

This report was elaborated under the supervision of International Pepper Community and information provided by the sources below:
- International Trade Centre (ITC) - Geneva
- Food and Agricultural Organization (FAO)
- Agricultural Commodity Export-Import Database, Ministry of Agriculture of the Republic of Indonesia
- Agricultural Commodity Price Information, Ministry of Agriculture of the Republic of Indonesia
- Directorate General of Estate Crops, Ministry of Agriculture of the Republic of Indonesia

WHATSAPP +5511988027709
MAIL manager@peppertrade.com.br
TWITTER : https://twitter.com/peppertrade


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IPC SPECIAL ISSUE ON CLOVES - FEBRUARY, 2020 PART 1

#CLOVES #INDONESIA

A little bit of History


The distribution of clove plants out of the Moluccas began in 1769. The spread of clove plants to regions of Indonesia such as Java, Sumatra and Kalimantan began in 1870. Today, clove plants have spread throughout the world.

Producing Areas

In 2019, the top 10 largest area of cloves cultivation were estimated to be North Sulawesi Province with 74,940 Ha, Central Sulawesi Province with 71,704 Ha, South Sulawesi Province with 63,136 Ha, East Java Province with 46,043 Ha, Maluku Province with 44,161 Ha, Central Java Province with 42,037 Ha, West Java Province with 35,697 Ha, South East Sulawesi with 31,388 Ha, Aceh Province with 25,530 Ha and North Maluku Province with 21,157 Ha.

Harvest in Indonesia

Harvest season in various producing area in Indonesia varied depending on the local climatic conditions. In Sumatra Island: flower buds grow between October - November and the harvest season is around April - June. Whilst, in Java Island: flower buds grow from November to January, so the harvest falls in May - July. In Maluku Island: flower buds grow between May - July and harvest season is between October - January. Whilst, in other areas the harvest occurred between July - October. Though, generally clove flowering and harvesting in Indonesia occur once a year, the harvest lasts a minimum of three months. Normally, cloves planting at 15 - 20 years of age would be able to produce around 3 kg per tree.

Uses of Cloves in Indonesia

In 2018, Indonesia as the largest producer of cloves in the world contributed to 74% or 123,399 Mt of global production and followed by Madagascar with 14% or 23,325 Mt. Since the 21st century, Indonesia became the largest cloves producer and consumer countries. Cloves in Indonesia are mostly used to supply the cigarette factories. Therefore, from the industrial side, Indonesia domestic production has met the needs of the processing sector. Furthermore, in 2019 the need for processing sector was estimated at 110,000 Mt which was around 83% of the total production and was fully absorbed by cigarette companies such as PT. Djarum Kudus, PT. Gudang Garam, PT. Sampoerna, etc.

Area of Production

The area under cloves cultivation in Indonesia fluctuated with a rather increasing trend. During 1961-2018 Indonesia area of plantation was reported with significant increase of 541,212 Ha. The average increase of cloves area of plantation in the course of half century was recorded 9% per year with the highest increase recorded in 1968 with an increase of 96% as compared with the previous year. In 2018, the area under cloves cultivation in Indonesia recorded the largest ever in the history with a total of 561,212 Ha, recording an increase of 2% when compared to 2017. Furthermore, for the year 2019 the area under cloves cultivation was estimated to increase by 2% to 571,305 Ha. The increase in the area of cloves plantation could be contributed to the massive cloves demand from domestic and international cloves market (Table 2).

Production of Cloves

Indonesian production of cloves during 1961-2018 was also fluctuated with a rather positive trend, recording an increase of 116,399 Mt to a total of 123,399 Mt in 2018. The average increase of cloves production in the past 58 year was reported by 11% per year with the highest increase recorded in 1966 with an increase of 103% as compared to the previous year. Furthermore, the highest production of Indonesia cloves was reported in 2015 with 139,641 Mt whilst the lowest occurred in 1962 with only 6,600 Mt. In addition, production of Indonesia cloves in 2019 was estimated to decrease by 3% when compared to 2018 to a total of 120,000 Mt.

Productivity

Cloves productivity in Indonesia during 1961-2018 was reported to be fluctuated with a rather stable trend. In the past 3 years cloves productivity in Indonesia saw decreasing trend to a total of 220 Kg per Ha in 2018. Since 1961 to 2018, cloves productivity in Indonesia was reported with a decrease by 37%. The average increase of cloves productivity in Indonesia was reported at 2% per year and the highest was reported in 1973 with 483 Kg per Ha whilst the lowest occurred in 1985 with only 144 Kg per Ha (Table 3). Furthermore, in 2019, Indonesia cloves productivity was estimated at 210 Kg per Ha or a decrease of 4% as compared to 2018. Despite Indonesian Government efforts in recent years developing a superior seed of clove which could be used by planters to replanting old or damaged plants andalso to boost the productivity of cloves plantations as well as the Directorate General of Plantations of Indonesia application of good agricultural practices (GAP) to clove plantation in vario us clove producing area, Indonesia's clove productivity was yet to show an increase trend following a decreasing streak which started in 2016.

SEE NEXT TOMORROW - EXPORTS & PRICES

This report was elaborated under the supervision of International Pepper Community and information provided by the sources below:
- International Trade Centre (ITC) - Geneva
- Food and Agricultural Organization (FAO)
- Agricultural Commodity Export-Import Database, Ministry of Agriculture of the Republic of Indonesia
- Agricultural Commodity Price Information, Ministry of Agriculture of the Republic of Indonesia
- Directorate General of Estate Crops, Ministry of Agriculture of the Republic of Indonesia

WHATSAPP +5511988027709
MAIL manager@peppertrade.com.br
TWITTER : https://twitter.com/peppertrade


BUYING CLOVES ? WE HAVE A GOOD OFFER FROM MADAGASCAR
CALL US peppertrade@olcom.com.br

VIETNAM - #PEPPER MARKET UPDATE 25TH FEB 2020 – WEEK 9;

#PEPPER:

Vietnam;
Pepper market firmer and increasing tone around 100$ from last week. Exporters have been covering short position for Feb/First Half March shipment beside some middleman/collectors buying huge quantity to keep stock. We heard some demand coming from China (Pay Full Tax) for prompt shipment that encourage farmers hold on and not offer in bulk. Good demand coming from Middle East/Nepal/India for March/April shipment especially black pepper 5mm bold cause shortage BOLD raw material in this time. USA customer more interesting to cover full year shipment but processor/exporters hesitate to offer long shipment. 

China;
The borderline start opening but not easy to clear cargo from trucking like before. The business in border trade maybe continue very tight until second quarter.

Brazil
Market uptrend continue and stock limited. Exporters cautious to offer second quarters shipment.