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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Cloves Indonesia

Cloves prices expected to move up in Indonesia

Cloves market which was running quite subdued for a long time, saw some action last week as Indonesia cigarette companies covered almost 25,000 mts at IDR 80,000/- levels farm gate price from farmers/collectors.

This led to prices moving up in Indonesia and exporters who were very keen to sell, have now withdrawn offers and waiting for market to stabilize before giving fresh offers/taking orders.

Local exporters believe cigarette companies may again enter markets to cover some more quantities at these attractive levels.

This report by anonimus (broker from India)

PEPPER MARKET REPORT

No. 26/19, 24 June - 28 June 2019
IPC

Market this week showed mixed response. In local market, Malabar black pepper was traded with a 1% increase as compared to the previous week with an average of USD 4,957 per Mt.
India black pepper price in local currency was reported at INR 343 per kg on Thursday.
Though Indonesian Rupiah strengthen against US Dollar, Indonesia black and white pepper were reported to be traded with a 3% and 1% deficit respectively as compared to the previous week, averaging at USD 2,048 per Mt for black pepper and USD 3,461 Mt for white pepper. Indonesian black and white pepper in local currency lost IDR 1,000 per Kg and were traded at an average of IDR 29,000 per Kg and IDR 49,000 per Kg respectively.
Malaysian black and white pepper was traded with an increase of 1% as compared with the previous week, averaging at USD 2,469 per Mt for black pepper and USD 3,899 per Mt for white pepper.
Viet Nam black and white pepper was reported stable when compared with previous week, averaging at USD 1,962 per M t for black pepper and USD 2,848 per Mt for white pepper.
Sri Lanka black pepper continued to be traded negatively and was reported with the lowest ever prices in recent years. Recording a 4% deficit as opposed to the previous week at an average of USD 2,837 per Mt. Whilst, China white pepper was traded with an increase of 2% as compared with the previous week averageing at USD 4,800 per Mt.

In international market, FOB price of India black pepper was reported with a 1% increase as compared to the previous week at an average of USD 5,246 per Mt.
Indonesia black and white pepper were reported negative and were traded with a 2% and 1% deficit respectively as compared to the previous week with an average of USD 2,505 per Mt for black pepper and USD 4,088 per Mt for white pepper.
Malaysia black and white pepper were reported with a significant 3% spike as opposed to the previous week, averaging at USD 3,685 per Mt for black pepper and USD 5,275 per Mt for white pepper.
Viet Nam black pepper 500 g/l, 550 g/l and Viet Nam white pepper were reported stable with an average USD 2,343 per Mt, USD 2,408 per Mt and USD 3,493 per Mt respectively.
China white pepper was reported with a 2% increase as opposed to the previous week at an average USD 5,000 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.

Golden Berries – Aguaymanto from Perú

Golden Berries – Aguaymanto from Perú


Golden berries are bright, orange-colored fruits that are closely related to the tomatillo. Like tomatillos, they are wrapped in a papery husk called a calyx that must be removed before eating.
Slightly smaller than cherry tomatoes, these fruits have a sweet, tropical taste somewhat reminiscent of pineapple and mango. Many people enjoy their juicy pop of flavor as a snack or in salads, sauces and jams.
Golden berries are also known as Inca berry, Peruvian groundcherry, poha berry, goldenberry, husk cherry and cape gooseberry.
They belong to the nightshade family and grow in warm places around the world.
This article tells you everything you need to know about golden berries, including their nutrition, benefits and potential side effects.
Golden berries have an impressive nutrient profile.
They hold a moderate number of calories, providing 74 per cup (140 grams). The majority of their calories come from carbs (1Trusted Source).
The same serving size also packs 6 grams of fiber — over 20% of the reference daily intake (RDI).
A 1-cup (140-gram) serving of golden berries contains the following (1Trusted Source):
• Calories: 74
• Carbs: 15.7 grams
• Fiber: 6 grams
• Protein: 2.7 grams
• Fat: 1 gram
• Vitamin C: 21% of the RDI for women and 17% for men
• Thiamine: 14% of the RDI for women and 13% for men
• Riboflavin: 5% of the RDI
• Niacin: 28% of the RDI for women and 25% for men
• Vitamin A: 7% of the RDI for women and 6% for men
• Iron: 8% of the RDI for women and 18% for men
• Phosphorus: 8% of the RDI

Golden berries also have high amounts of beta-carotene and vitamin K along with a little calcium.

Golden berries boast an impressive amount of vitamins, minerals and fiber — with only 74 calories per cup (140 grams).
Health Benefits
Golden berries contain several plant compounds that may positively impact your health.
High in Antioxidants

Golden berries are high in plant compounds called antioxidants.

Antioxidants protect against and repair the damage caused by free radicals, which are molecules linked to aging and diseases, such as cancer.
To date, studies have identified 34 unique compounds in golden berries that may have benefits for health.
Furthermore, the phenolic compounds in golden berries were shown to block the growth of breast and colon cancer cells in test-tube studies.

In another test-tube study, extracts of fresh and dehydrated golden berries were found to increase the life of cells while preventing the formation of compounds that cause oxidative damage.
The skin of golden berries has nearly three times the amount of antioxidants as their pulp. Additionally, antioxidant levels are at their peak when the fruits are ripe (8Trusted Source).
Has Anti-Inflammatory Benefits

Compounds in golden berries called withanolides may have anti-inflammatory effects in your body, potentially protecting against colon cancer.
In one study, an extract from the husk of golden berries reduced inflammation in mice with inflammatory bowel disease. Additionally, mice treated with this extract had lower levels of inflammatory markers in their tissues.
While there are no comparable human studies, test-tube studies in human cells reveal promising effects against inflammation.

May Boost Immunity
There are no human studies on golden berries and immune system function, but test-tube studies suggest several benefits.
Studies in human cells note that golden berries may help regulate your immune system. The fruit contains multiple polyphenols which block the the release of certain inflammatory immune markers.
Additionally, golden berries are a good source of vitamin C. One cup (140 grams) provides 15.4 mg of this vitamin — 21% of the RDI for women and 17% for men.
Vitamin C plays several key roles in a healthy immune system response.

May Benefit Bone Health
Golden berries are high in vitamin K, a fat-soluble vitamin involved in bone metabolism (2Trusted Source).
This vitamin is a necessary component of bone and cartilage and is also involved in healthy bone turnover rates, which is how bones break down and reform.
The most recent evidence suggests that vitamin K should be taken alongside vitamin D for optimal bone health.

May Improve Vision
Golden berries provide lutein and beta-carotene, along with several other carotenoids.
A diet high in carotenoids from fruits and vegetables is linked to a lower risk of age-related macular degeneration, the leading cause of blindness.
Specifically, the carotenoid lutein is well known for preventing eye diseases.
Lutein and other carotenoids, including zeaxanthin and lycopene, have also been shown to protect against vision loss from diabetes.

Golden berries may have several benefits for your health. They are high in antioxidants, exhibit anti-inflammatory effects and may boost bone health and vision.

Potential Side Effects
Golden berries may be poisonous if you eat them unripe.

Unripe golden berries contain solanine, a toxin naturally found in nightshade vegetables, such as potatoes and tomatoes (20Trusted Source).
Solanine can cause digestive upset, including cramping and diarrhea — and may be fatal in rare cases.
To be on the safe side, eat only fully ripe golden berries that have no green parts.
Additionally, keep in mind that eating high amounts of golden berries may be dangerous.
In one animal study, very high doses of freeze-dried golden berry juice — 2,273 mg per pound of body weight (5,000 mg per kg) daily — resulted in heart damage to male — but not female — mice. No other side effects were observed.

There are no long-term safety studies on golden berries in humans.

Eating golden berries appears safe, although there are no studies in humans. That said, unripe fruits may cause digestive upset, and high doses of its juice have been shown to be toxic in animal studies.

How to Eat Them
Golden berries can be enjoyed fresh or dried once their papery husks are removed.
Fresh golden berries can be found at farmers markets and many grocery stores. Dried golden berries can often be purchased online.

Here are some ways you can incorporate golden berries into your diet:

Eat them raw as a snack.
Add them to a fruit salad.
Sprinkle them on top of a savory salad.
Blend them into a smoothie.
Dip them in chocolate sauce for dessert.
Turn them into a sauce to enjoy with meat or fish.
Make them into a jam.
Stir them into a grain salad.
Use them on top of yogurt and granola.

Golden berries add a unique flavor to almost any dish or snack.

Golden berries are a versatile fruit that can be eaten fresh or dried. They add a unique flavor to jams, sauces, salads and desserts.

Although golden berries are closely related to tomatillos, they have a sweet, tropical taste similar to pineapple and mango.
They are high in fiber, vitamins, minerals and beneficial plant compounds that may boost your immune system, eyesight and bones.
They are best eaten fully ripe — without any green spots.
These flavorful fruits add a unique, sweet taste to jams, sauces, desserts and more.

Alimentos Andinos PERU
20 de junho às 11:40

For further details send message to :manager@peppertrade.com.br
or whatsapp: +5511988027709

Vietnam new crop White Pepper

Offering now for prompt shipment Vietnam White Pepper DW ASTA grade
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BRAZILIAN PINK PEPPER






Sao Paulo 17, 2019

We are already shipping our first contracts of the Pink Pepper 2019 crop from Brazil.
Harvest is almost finished and prices stabilized.
Availability of superior quality is not big now.
Current price idea for G1 quality is around U$ 12,20 /Kg FOB port of Santos. packed in poliethilene bags, vacuum or semi-vacuum with neutral gas inside, 5 or 10Kgs net, inside a carton box.
20ft containers load is aprox 7 to 7&1/2 ton.


MICHAIL WAGAPOFF
WHATSAP +5511988027709

SPICES MARKET UPDATE 15th JUNE 2019

PEPPER:

Vietnam: Regarding to customs, Vietnam exported 148,515 tons of pepper, including 133,273 tons of black pepper and 15,242 tons of white pepper. Total export turnover reached 386.5 million USD. Compared to the same period of 2018, export volume increased by 34.8%, equivalent to 38,376 tons. The average export price of black pepper in the first 5 months of 2019 reached 2,537 USD/ton, white pepper reached 3,176 USD/ton. Compared to the same period of 2018, the export price of black pepper decreased by 23.1%, white pepper decreased by 36.7%.

China imported in the first 5 months of 2019 reached 36,038 tons, equivalent for 24.3% of total pepper export of Vietnam, increase of 128.4%, equivalent to 20,259 tons over the same period in 2018.

USA with 22,735 tons roughly 15.3%, increasing 3,893 tons. Markets with the next largest increase quantity as: Ireland increased 1,855 tons, India increased 1,563 tons, Germany increased 1,561 tons, Iran increased 1,417 tons, Nepal increased 1,396 tons, United Arab increased 1,112 tons, ...

Market increasing and limited offer in bulk from farmer/middleman. Chines has been buying White pepper significantly beside exporters covering raw material for June shipment. Even crop size 2019 of Vietnam is huge number 300.000 metric tons at least (our source and our opinion) but covered stock for June/July/Aug always recommendation even Indonesia crop is coming (June we foreseen total quantity export around 30 - 33k tons and first 6 months will be reaching roughly 180k metric tons). Vietnam currency suddenly stronger than USD, out of Vietnam Pepper exporters’ expectation.

Brazil: Offer still available to the market but limited and only further shipment. Vietnam/Indonesia only under high pressure when Para start for harvesting during Aug/Sept.   

Mr. Hien
Website: www.ptexim.com.vn

https://www.facebook.com/peppertrade.diffusion

IPC WEEKLY MARKET REPORT

Market this week showed mixed response.

In local market, Malabar black pepper was traded with a 1% deficit as compared to the previous week with an average of USD 5,039 per Mt.

India black pepper price in local currency was reported to experience a continuous drop from the beginning of the week and was closed at INR 347 per Kg on Thursday.

As the market resume after the Eid Mubarak Holiday, Indonesia black and white pepper were traded at an average of USD 2,104 per Mt and USD 3,506 per Mt respectively.

Sarawak black and white pepper was reported stable and relatively unchanged when compared with the previous week.
Recording a 2% spike as opposed to the previous week, Viet Nam black pepper became the only product which recorded an increase and was traded at an average of USD 1,890 per Mt. Whilst Viet Nam white pepper was reported stable.

Sri Lanka black pepper continued to be traded negatively, recording a 5% deficit as opposed
to the previous week while China white pepper was traded with an average of USD 4,775 per Mt.

In international market, India was the only origin to have recorded a deficit. FOB price of India black pepper was reported with a 1% deficit as compared to the previous week at an average of USD 5,327 per Mt.

Indonesia black and white pepper were traded internationally at an average of USD 2,567 per Mt and USD 4,138 per Mt respectively.
Malaysia black and white pepper remained stable and showed insignificant movement.

As offer dried up Viet Nam black pepper 500 g/l, 550 g/l and Viet Nam white pepper were reported with a significant 4%, 4% and a 3% spike respectively as opposed to the previous week.

China white pepper was reported at an average of USD 4,975 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.

SALT

 

http://www.magicspices.co.il/Mediterranean-salt.html

CARDAMOM

Cardamom

The cardamom prices have reached record-high levels this year, similar to the price levels in the years 2010 and 2011.
Guatemala is already sold out for its main varieties since March 2019, which is quite extraordinary with still 6 months to go before the new crop.
It is still too early to give predictions on the new crop, but the new plantings, which started in 2017 and 2018 will mature only in 2020/2021,
which means that on the short-term (in the years 2019/2020) there will be a shortfall in production.
An important downward price correction is therefore not expected, especially taking into consideration that India’s crop is expected to be about 40% smaller than last year.

BRAZILIAN PINK PEPPER HARVEST IS ALMOST DONE...
Check for our offers: manager@peppertrade.com.br

REPORT ABOUT PRESENT BLACK PEPPER MARKET & TRENDS

IN THE LAST DAYS RE GOT TO KNOW SOME REPORTS ABOUT BLACK PEPPER MARKET.

INTERESTING READING FOR THE ONES OPERATING IN THIS TRADE.

Vietnam – Although fresh demand from the world market is missing, prices are holding steady to firm.
A record quantity has been exported: March (37,000 tons), April (36,000 tons) and May
(37,000 tons) bringing a total volume to approximately 143,000 tons till May 2019;
36% more exports than 2018 in similar period.

We have not observed such stunning export figures in our 26 years of trading history. Knowing 8 more months to new crop,
farmers and dealers are now in a comfortable position to hold remaining quantities without panic. This is very much evident from arrival of goods and gradual rise in raw pepper prices.  

Their comfort level will increase more once 60-70% of crop is out of Vietnam.
In May, raw prices remained between 44000 to 46000 dong/kg.
China keep supporting the pepper market and their pepper imports have risen to 70% from 2018 followed by USA and India to 27% and 10% respectively.

Buyers keep pushing for lower prices. We have not seen very aggressive offers for future shipments as all of them feel more risk than reward.
Destination markets need to consume extra volume imported during last 3 months.
Not to forget that combined Middle East and Asia has become one of the largest pepper
consumer market in recent years and their constant support to origin keep prices steady.

Limited numbers of orders in hand with exporters do indicate that coverage for second half is yet to come.
Low pepper prices and higher maintenance cost are pushing few farmers to cut trees and plant some other commodities.
Farmers in Chu Puh and Chu Sê districts—two key pepper growing areas who had invested for a dozen of pillars that covered one hectare are now selling the same number of pillars in lower cost as many of them have gone bankrupt.
Add to pot, young trees are also dying due to poor care of farmers, poor maintenance of current
vines and virtually no new plantation, crop size will reduce gradually while world consumption in general increases by 3-4% annually.
Expect volatile days in 2020 and beyond.
Imports to India via Nepal may halt due to 100% additional duty (from 10-20%) has been imposed recently in their annual budget presented in end May.

Indonesia – No bad news so far. Expecting similar or slightly better crop than 2018. However, no selling pressure or any aggressive pricing from numbered top-class shippers.

Brazil – It is interesting to note that for the first time, Brazil is not discounting to Vietnam prices. In fact, quotes from Brazil are now in line with Vietnam. This firmness is attributed to strong currency and depleted inventories.
Brazil too have exported large volume in the last 5 months (approx. 40,000 tons).
Their new crop from Para region to start in August – September.
We have not seen any selling pressure yet. First class shippers prefer to stay away from sharp bids.
If Vietnam continues to be firm, world demand may shift to Brazil which may help Brazil to stabilize further.
In general, there is resistance at low prices.
Demand from Europe has slowed down due to the new import regulation on salmonella and at the same time volume from Vietnam has increased considerably for European ports.

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Indian Black Pepper futures likely to crash as farmers decide to Start selling Spot Cargo

OPINION by Sham Nair


Kochi/Mumbai/New Delhi 09 March 2012

Indian Black Pepper futures which increased 40% in less than three weeks with heavy speculative activities by non pepper traders who hand in glove with the exchange and the commodity regulator manipulated the pricing of Black pepper seems to have exit the market transferring the load to retail investors mainly is likely to crash in the coming days .Of course there is a shortage of production of Black pepper in the country but the sharp rise in just 18 days is a case of sheer manipulation according to industry stalwarts. Vietnam the worlds largest producer and exporter is offering Rs 100/- kg below the Indian Pepper prices and still not finding buyers or rather attracting buyers in the European Union and North America who claims to have sufficient stock to cater their needs till June and not in a rush to buy even after seeing the wide difference in pricing . The importers feel that the prices in Vietnam still have to drop another 10% to make it attractive for them and the freak Indian situation is completely discounted by them.Indian futures its matter of time is going to fall like nine pins said a major importer who alone buys 20% of North American requirements .

With multi origin multinationals deciding to deliver the Valid stocks they received in the February deliveries back in March and the validity expired stocks received in February by some of them is reprocessed and deposited in the exchange platform another 3000 mt pepper will be offered for March deliveries this time as most of the traders would like to have a clean book as its the financial year ending for all in the country there are every chances the futures delivery in India nose diving in the coming days and might move back to Rs 360 per kg from the present 439 /kg for April deliveries according to pioneers and veterans in the trade.

With the very wide gap between Indian and Vietnam pepper the value added processors who left the import front a year ago are back with full vigour and before the end of the month about 1000 mt of black pepper is likely to reach in Mumbai/Chennai ports besides Cochin .

In the meanwhile with lack of export orders in hand many Vietnam companies are offering shipments for April and May at a discount is raising the eye brows of many as its heard the flows of new crop is in full swing prices are likely to drop in Vietnam in the coming days by 10,000 VND per kilogram ( usd 500 pmt )



Sham Nair

PEPPER - A MODERATE VIEW

Dear Sir
Good day
Please publish this article.
Best Regards
Quote
Dubai
19/01/2012
International Pepper maket starts showing some signs of life Thanks to report published in the "Vietnam News" 19/01/2012.
The report is self explanatory claiming that Vietnam shall export only 86000 MT of Pepper in year 2012-a 30 pct decrease in production.The reason explained behind this claim is the death of old plants.
It seems very strange that In November 2011 Vietnam Pepper Association has presented his figures upto 110000 tons which itself was objected by independent sources and traders in Lambok.Many reliable sources are of the view that pepper production in Vietnam is not less than 135000 MT for 2012 crop.
For last many weeks pepper has been the most silent spice.In year 2011 Vietnam new crop started @usd4200 fob and comlpeted the upward journey till 8400. exactly double.Then started coming back and stopped at 5500 last week.People were thinking that the price could touch usd5000 or even lesser but some immediate demand before TET holidays and this report has suddenly pumped bullish sentiments in the market.
Even the cheapest market Dubai has improvment that had already reached 5200 level this week.
Will it continue.Thats a question?
If we check some years history its evident that people stops shopping 3-4 months before Vietnam new crop arrival and after Tet holidays when Vietnamese resume their business activities thay see a lot of demand and immediately raise the prices.This year the story is not much different but with one change.Consuming markets are not not empty.Middle east and even Europe has pepper.Though the traders are showing reluctance in releasing the high priced cargo but its the fact pepper is there unlike last year.
People need to show some patience in their shopping if they want to make market suitable for all the stakeholders of the industry.If they trust in baseless reports and rumours ,it will repeat last years result .Defaults for low priced contracts and losses in high priced goods.
We shall have to see fundamentals too.
1-The supply for 2012 is not meagre.
2-There is no supply demand mismatch for pepper in 2012.
3-Economic conditions in Europe and all over the world are not remarkable.
4-All other agriculture commodities and specially spices have been travelling fast to South.Like Cardamom has 75 pct drop .In the same way cloves 50 pct,Cummin 30 pct .In other commodities Rice ,wheat,sugar all have lost much.
So one must be careful in giving bids.

Thanks and best Regards
Muhammad Asif Qureshi
General Manager
Commodity King Traders LLC
Nuts & Spices Agent
Member
INC(International Nut &Driedfruit Council)
CENTA(The Combined Edible Nut Trade Association,UK )

Sham Nair: M&M Disturbs Indian Pepper Trade

Kochi/Mumbai/New Delhi /10/ 01 2012 02 HRS IST

Muscle and Money Power play by non Pepper operators since last Nine months is disturbing the Indian pepper trade according to cross sections of the trade from various parts of the country.
Mr Lukose Mathew of Kottarakara a leading collector from various farmers said that he is getting out of the pepper business which he was doing since last 30 years as he cannot afford to loose any more as the recent volatility created by non pepper operators are forcing traditional pepper players like him to exit the Business. We have to buy every day whatever the farmers bring and it will take two weeks to collect 3mt or 5 mt quantity and currently in three trading working days the futures market is pushed down by Rs25/- Rs 30/- kg making it impossible for me to turn around the stocks as once the futures drop the exporters completely withdraw and doesn't even quote any prices still the market stabilises and they even don't buy when the market moves up drastically.

The current scenario in India is ,from 65 exporters in the 1980's the number has shrunk to very few whom you can count down finger tips and they are all very seasoned and none of them play short and doesn't get excited when the market goes down or up and doesn't care what the speculative groups do. According to a senior Manager of a multinational company the excessive speculations are happening with the blessings of the exchange authorities and the toothless watchdog with blind eyes.

Its high time the Government of India brings the commodities also under the securities watch dog SEBI which is performing a wonderful job in this country and shut down the commodities watch dog Forward Market Commission.

Mr Kunal Shah a trader from Nagpur said he is trying to keep away from spices in which futures Gambling Licence is given in India.
When there is a free flow of the spice the prices are pushed up unnecessarily and when its supply is tight the futures are pushed down drastically and certain times even Rs 20/- 30/ Kg than in tandem price discovered by special experts of spot raw pepper sitting in the alley of old spice market Jew Town in Cochin.Some of the experts say its Circular trading happening in the exchange by a group who has cornered the commodity and some others say its the exchange itself playing the market up and down and triggering stop losses to show the inflated turnovers in the exchange.

The India Pepper and Spice Trade Association the pioneers in the futures trade of Pepper for fifty years conducted it very beautifully and systematically and the exchange itself had the tools in hand to control money and muscle play but with the entry of national exchanges it got buried and has become a part of the history due to the vested interests of a very few orthodox traders.

The traditional small, medium and large pepper traders have lost interest in the system and is keeping away from the activities of the unregulated futures trade in the country where Muscle and Money are in play with the blessings of the exchange and its watchdog.

Meanwhile in the last 16 days future delivery prices of January contracts have fell by Rs 56/-kg and the in tandem discovered price of raw pepper by Rs 38/-kg and the cheapest origin of Black pepper in the world India has become more cheap but the expected volumes are not happening is one thing which has to be investigated in detail as the manipulators/operators are playing with 5000 mt of spot pepper which is not even the volumes of 2 major exporters in a month from Vietnam and which can suddenly change hands to smart exporters there by putting an end to the power play.

Some Biz was done to North America on Friday and Monday with prices becoming very attractive for January and February shipments in the usd 2.95/-3.05/lb range and more buying interest is seen at usd 2.90/lb range for February shipments by Giant buyers who may runaway if the Indian futures market is lowered further in the coming days.

Cloves soar on supply squeeze

G. K. Nair
Kochi, Feb 27
Cloves prices have shot up in the Indian and international markets on severe shortage caused by crop damage in several producing countries.



Trade sources told Business Line that there were buyers for Colombo cloves at Rs 375 a kg. The prices in Colombo have risen to $7,500 a tonne from $6,200 a tonne and “it is on the rise as days pass by”. If the current trend persisted the price might cross $8,400 a tonne, they claimed.

Severe shortage in India is forcing buyers to cover from Colombo at the prevailing prices. The advantage for the Indian importers is the four per cent import duty, they said. The prices for other origins such as Zanzibar and Madagascar are at $7,000 a tonne and it will become costlier as the import duty is at 35 per cent, they said. Zanzibar, Madagascar and Comoros cloves prices would come to Rs 425 a kg at present, they said. The crop in Indonesia, the biggest grower of cloves in the world, has reportedly failed due to unfavourable weather.

The “cigar companies will need 25,000 tonnes, and there is not so much cloves available in any of the origins”, they said.

Indian production of cloves continued to remain negligible when compared with the demand and if the country were to become a net exporter of the commodity from its current status of a net importer, the State and Central governments and the Spices Board would have to provide special emphasis to promote its cultivation. The output continued to vacillate between 1,000 tonnes and 2,500 tonnes as against an annual demand of over 20,000 tonnes.

The current crop, harvesting of which is to commence in late January/February, is estimated at around 1,000- 1,250 tonnes because of the continuous rains in recent months, Mr Ramakrishna Sarma, Managing Director, Travancore Rubber and Tea Company Limited, a major grower of cloves in the country told Business Line.

The continuous rains punctuated by occasional sunshine helped healthy vegetative growth, but at the cost of yield, depriving the plants of flowering which is turn has reduced the output by around 50 per cent from the previous seasons estimated 2,500 tonnes.

Non-remunerative prices for long in the past forced several growers to switch over to other crops. No motivating efforts have so far been made to bring them back. Even though the prices of other commodities have gone up significantly, cloves prices are oscillating between Rs 250-320 a kg because of import of poor quality material at low prices from other origins for a long time. “Therefore, the real value of Indian cloves has not gone up for over a decade,” he said.

As a result, growers have switched over to more remunerative other crops bringing down the area under cloves to around an estimated 2,200 ha.

What s gonna happen to Black Pepper market in 2011 ? What is the trend ?

The last two weeks we ve been receiving emails from many readers and customers with this question: Whats gonna happen to the market now, near month, the year ?...
After the big rise in 2010 when prices started at U$ 2,800 in January and ended in December at U$ 4,900 a lot of uncertainity clouds over the traders and importers all over the world.

Historically, every year prices start by droping in the beginning - January or February or March or even earlier some years like in 2007 and 2008 - in December, on the expectation of the two of main crops _ India and Vietnam. However India ceased to be an exporter already so the determinating crop became just Vietnam. Nevertheless India became a net importer and a big one - the sort of one that may determine the world export prices with its purchases abroad.

This was what the market expected to happen again this year, moreover because prices are said to have reached historical top heights staying over 4,000 level for more than 6 month.

However this is not happening this season - already in the month of March, new crop from Vietnam arriving slowly but no big change in prices. And the buyers - relutantly - are forced to buy, even small quantities, but they are buying.

We read some weeks ago an analisis saying that USA buyers were covered because of the 2010 imports: "United states of America has imported 52,014 Mts of black pepper compared to 49,148 Mts in 2009 and and 49,626 mt in 2008." see @ Record imports of Black pepper in 2010 Keeps USA Buyers away from Markets 2011/02/17

What this report forgot was that before the crisis of 2007 USA were buying 52.152 mt in 2005 and 55,598 in 2006 and growing at a rate of 3% per year average. Thus, nothing more natural than to start growing again when recovering from the crisis. We consider that these figures do not indicate that market is covered now.

This week the Public Ledger published a report upon consulting leading Pepper operators in Germany, Netherlands, Uk, and Olam people.

A part of minor divergences all of them consider that demand is steady and and buyers are short to some point, trying to delay their purchase to the maximum possible in hope to get better prices when Vietnam will come in full swing. However as one of the interviewed persons say " People have to buy in, they can’t wait longer: they have to book physically the pepper. So if the Vietnamese (prices) are dropping everyone will jump on that like crazy to buy it.” And commented about Vietnam "“If they are able to hold back the pepper they can play this market like they want, because the buyers have no coverage and there are very limited stocks in the pipeline. We are completely dependent on Vietnam.”

Indonesia who played a decision factor in the last two years sems to have no more enough stock to trade the buyers position, thus this year more than ever Vietnam will decide where the Black Pepper market will go.

Vietnam will produce between 100 kmt, - official information - and 120 kmt, according some skilled traders. Possibly even more if we learn for last years. However this makes no big difference as the world economy resumed and production is said to be below the consumption. Vietamese producers, processors and exporters made some good bucks last seasons so possibly they are pretty wealthy this year, with no rush, thus for make cash.

Other point not very much analized is that all prices for any commodity rose in general. The USA Dollar devaluation indicates that the Pepper priced today at U$d 5,000 equals to aproximatelly U$D 2,000 in the year 2000. And, just for the records the avreage price of pepper in 1999 was U$D 4,880. So historical hights is another lulaby. To become true, todaý price should be over U$D 10,000 pmt.

There is room to go, thus...

PEPPERTRADE EDITOR