VIETNAM SPICES MARKET UPDATE 11TH JAN 2021 – WEEK 1&2

 

PEPPER 

Pepper exports in December 2020 reached 23 thousand tons, worth 62 million USD, up 0.3% in volume and 2.5% in value compared to November.

Approximately pepper export in 2020 is estimated at 288 thousand tons, worth 665 million USD, up 1.2% in volume. The average export price is estimated at 2,313 USD/ton, down 7.9% compared to 2019.

Pepper prices from the first week of 2021 are being affected by the news of the Covid-19 epidemic and trade tensions between major countries.

Due to the closure of the countries due to Covid-19 and the political situation in the US and UK, the strained US-China relations affected goods greatly.

At this time, the low price caused speculators to increase buying, but the transaction was still quite bleak.

Vietnam's pepper prices in the short term will be quiet in the absence of supportive factors. The main reason for the recent price drop is the tension situation of the shipping charges and the shortage of containers. Many routes to EU/AFRICA/USA… increased galloping with an increase of 500-7,000 $ per container of export cargo. There is a 1000% increase in just 30 days with some destination in ASIA. This situation may continue, causing the fact that pepper produced in Vietnam cannot be exported much to other countries. Materials are clogged in production warehouses and at ports of destination because some shipping agents cancelled booking/increase price without reason.

Besides, the present time the key pepper province of Vietnam is Daknong province has starting the harvest season, so the export price of pepper lacks a supporting factor.

However, price of pepper at spot market up daily and many customer shortage stock to process because almost all waiting reduce for cost freight. We might be seen huge demand will come again in the market when freight/container space back to normal.

In the medium term, global pepper production will continue to decline as top producing countries do not implement new planting, while the maintenance of existing pepper farms is not focused, many pepper farmers are not growing also focus on profession because the price now not attractive to the farmer. If this situation continues in the next years, the price of pepper will tend to increase in 2021 & 2022.

The exchange rate of Vietnam currency in 2021 is forecast to be about 2% stronger than USD, which will also an increase price in exports from Vietnam compared to previous years.

 

India
India's pepper production in 2021 is likely to be significantly lower than in 2020, The reason is that the cultivation and production of pepper is affected by erratic climate, typically strong winds and heavy rain in Idukki, Wayanad, Coorg districts and some areas in Karnataka state. Currently, the new harvest on the farms is coming. However, many farmers are delaying the harvesting process due to unfavorable weather.

CASSIA 
The market continues to grow strongly when demand is high but inventories have decreased rapidly. Raw material prices are forecasted to continue to rise as demand is high from the EU/USA and ASIA.

 

STAR ANISE

The market increased rapidly due to strong demand, in addition to a serious crop failure in spring due to storms and droughts. It is expected that the price of anise will continue to increase in 2021 while there is very little inventory.

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

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

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

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

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

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

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

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

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

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

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

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

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

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Star Anise Seeds

New crop staraniseeds from Vietnam is available. For this product there are 2 crops (autumn & spring); autumn crop is the far better quality in colour, size and overall appearance. The best growing area is Lang Son, here we find the premium qualities.

Van der Does
http://doesspice.com/

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