#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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