Indian Spice Exporters Worry About Losing Market Share in the US to ASEAN Countries
In the domestic market
Recorded this morning, pepper prices in the domestic market remained stable at around 139,000 - 140,000 VND/kg.
Of which, the pepper price in Dak Nong is currently being purchased at the highest level of 140,000 VND/kg. Next is Dak Lak at 139,500 VND/kg, Gia Lai at 139,000 VND/kg.
In localities in the Southeast region such as Ba Ria - Vung Tau, Dong Nai and Binh Phuoc, pepper prices are commonly at 139,000 VND/kg.
|
Market (survey area) |
Purchase price on August 4 (Unit: VND/kg) |
Change from previous day (Unit: VND/kg) |
| Dak Lak |
139,500 |
– |
| Gia Lai |
139,000 |
– |
| Dak Nong |
140,000 |
– |
| Ba Ria – Vung Tau |
139,000 |
– |
| Binh Phuoc |
139,000 |
– |
| Dong Nai |
139,000 |
– |
In the world market
According to data from the International Pepper Community (IPC), Indonesian black pepper prices are currently quoted at $7,063/ton, Brazilian black pepper ASTA 570 is at $6,000/ton, while Malaysian black pepper ASTA stands at the highest at $8,900/ton.
Vietnam's black pepper export price ranges from 6,140 - 6,270 USD/ton for 500 g/l and 550 g/l black pepper.
|
Type name |
World black pepper price list |
|
|
August 4 (Unit: USD/ton) |
% change from previous day |
|
|
Lampung Black Pepper (Indonesia) |
7,063 |
– |
|
Brazilian Black Pepper ASTA 570 |
6,000 |
– |
|
Kuching Black Pepper (Malaysia) ASTA |
8,900 |
– |
|
Vietnamese black pepper (500 g/l) |
6.140 |
– |
|
Vietnamese black pepper (500 g/l) |
6,270 |
– |
At the same time of survey, the price of Indonesian Muntok white pepper reached 9,873 USD/ton. The export price of Vietnamese white pepper stood at 8,850 USD/ton, while the highest price of Malaysian ASTA white pepper was 11,750 USD/ton.
|
Type name |
World white pepper price list |
|
|
August 4 (Unit: USD/ton) |
% change from previous day |
|
|
Muntok Indonesian White Pepper |
9,873 |
– |
|
ASTA Malaysian White Pepper |
11,750 |
– |
|
Vietnam white pepper |
8,850 |
– |
Update pepper information
According to The Hindu Business Line , Indian exporters say the 25% tariff imposed by the Trump administration will make Indian spices such as pepper, turmeric and ginger less attractive in the US market compared to products originating from Vietnam and Indonesia. They fear losing market share in these product groups to competitors in the ASEAN region.
The US is currently the second largest market for Indian spices exports. According to data from the Spices Board of India, India’s exports of spices and spice products to the US in the financial year 2024–25 were valued at $711 million, up 15% from $619.29 million the previous year. In volume terms, exports increased by 13%, from 111,400 tonnes to 125,600 tonnes.
The spices industry is now waiting to see what the final tariff will be, as well as the penalty on oil imports from Russia, said Emmanuel Nambusseril, president of the All India Spices Exporters Forum.
Currently, India’s main competitors in black/white pepper are Vietnam and Indonesia, with Vietnam’s tariffs at 20% and Indonesia’s at 19%. These countries would have a clear advantage if India were to be imposed with a 25% tariff, not to mention additional penalties, Nambuserril said.
For other spices, US buyers will still have to rely on India – the world’s largest producer (and consumer) of spices – despite the additional tariffs and penalties. “Exports may be down in the short term, but we expect them to stabilize in about three to four months,” Nambusseril said.
Currently, Indian spices are subject to a 10% duty, and most exporters have passed the cost on to buyers. “So far, we have not received any negative feedback from US buyers,” Nambusseril added.
Mr Nambusseril also said that as tariffs increase, US importers may slow down their purchases, while Indian exporters cannot absorb the cost of tariffs or additional penalties and are forced to pass these costs on to their product prices.
Mr. Prakash Namboodiri, Director of AB Mauri India (Spices), commented that Indian spices will become more expensive for US importers and retailers, making them less competitive compared to alternative products.
“Countries like Vietnam, Indonesia – where tariffs are lower – can take market share from India, especially in competitive products like pepper, turmeric, ginger…,” he said.
As a result, spice brands in US supermarket chains may be forced to raise prices or cut product lines, affecting consumer demand. This will lead to a decline in consumption and export turnover.
Exporters are likely to face delivery delays, contract renegotiations, increased logistics costs, extended capital turnover times, lost orders and uncertain prospects.
The importance of the US market for Indian spices exports cannot be understated, as the US is the second largest importer and also the largest value-added buyer of processed spices. India’s spice exports in FY2024–25 are expected to grow by nearly 6% to a record $4.7 billion, compared to $4.46 billion the previous year.
In addition, Mr. Namboodiri said that importers are not willing to shoulder the 25% tariff increase and are expecting exporters to share most of the additional costs. Meanwhile, Indian spice exports typically have low profit margins of around 2–5%, making it extremely difficult to maintain orders. Indian suppliers have also pre-purchased raw materials for contracts, so if orders are canceled, they will incur huge losses.
According to VietnamBiz.vn
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