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

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

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



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India Spices: Wednesday, Aug 14

By Preeti Bhagat

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

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

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

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

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

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

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

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


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



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VIETNAM - PEPPER MARKET UPDATE 15TH AUG

 






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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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



www//economictimes.indiatimes.com/

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Chilli industry spices up people's lives in central China

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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Chinese garlic prices have begun to fall

From The Fresh Plaza

Source: Voice of Chinese Villages

Publication date: 8/8/2019

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

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

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

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PEPPER PRICES 2010 - 2018