PEPPER INDIA - IMPORT FEARS GRIP KOCHI´S PEPPER MKT

Kochi  July 03, 2020

Pepper prices declined by R2 per kg, with an average price realisation of R314 per kg, in Kochi on Tuesday 
Fear of pepper imports seem to have gripped the spot market in Kochi with the prices registering a R1/kg drop on Friday.

According to Kishore Shamji of Kishor Spices, there was pressure on local dealers to sell as there were more sellers in the market with imported pepper. The emerging situation has also forced Karnataka planters to liquidate their stock on the fear of imports even at MIP of R500 per kg, he said.

He pointed out that such a situation arose inspite of the government imposing minimum import price restrictions and the Customs Department being given powers in the last Budget to look into the price factor even for imports from bilateral countries.

The farming community fears that their existence will be at stake if such imports continue, he said. They requested the Prime Minister, Finance and Commerce Ministers to look into the matter seriously for the various representations submitted in this regard.

IPSTA Cochin Black pepper rate (R/kg): MG1: 326, ungarbled: 306; 500 G/L: 296 at an off-take of 26 tonnes.


Published on July 03, 2020


V Sajeev Kumar for
www.thehindubusinessline.com/markets/commodities

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VIETNAM MARKET UPDATE 1ST JULY 2020 – WEEK 27

JULY 1st ,  2020

Viet Nam;

The pepper market uptrend again with 45$ increase in the first day of July after falling in the past week. Despite the negative information and lower oversea demand compared to the previous months. However, in June, Vietnamese also exported roughly 24,000 tons, bringing the total pepper exported in the first 6 months of 2020 to reach 171,115 tons (6 months of 2019; 180,276 tons). With the commitment was done, we will not be surprised if the export volume in July, 2020 to reach 18-20,000 tons at least, bringing the total export volume in the first 7 months of 2020 to approximately 190,000 tons. An impressive figure when total production of 2020 pepper crop is assessed to decrease by 15-20% compared to the 2019 crop.

Some other information for reference;

- Export in the last 6 months of 2017 (July to December); 89,529 tons

- Export in the last 6 months of 2018 (July to December);  103,737 tons

- Export in the last 6 months of 2019 (July to December); 106,727 tons

- Let's wait and see how many tons will be exported in the last 6 months of 2020

Although China's demand is currently low, they almost do not participate in pepper much over 5 weeks. However, the current price remains stable and it will be difficult to reduce in the near future due to stock coming too tight. Prices are still low and farmers are not willing to sell more when market correction. If the price is reduced, farmers immediately offer to drip and stop offering.

Brazil;

Currently, Brazil stock finished now and cannot offer immediate shipment. The second crop of Brazil will start in end August/early September, so it can only be offered during September onwards 2020 shipment. However, it is likely that Brazilian exporters have already sold about 15 - 20% of the new crop in advance and will prefer to cover from farmers first instead of continuing to offer further shipment.

Indonesia;

We heard heavy rains and strong wind continuously so maybe delays in harvesting until beginning August. Prices are not attractive to the farmer and the 2020 crop may reduce production. Crop 2020 expected to export is very small with about 17-20,000 tons so farmers/exporters will not hurry to offer.

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Moisture content drags down pepper prices in Kochi

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June 29, 2020
Pepper prices were down by ₹2 per kg in Kochi on Monday following the availability of higher moisture content pepper due to the present climatic conditions. The prices were at ₹310/kg on an off-take of 30 tonnes.
Kishore Shamji of Kishor Spices said that there are more sellers from Wayanad and Coorg for lower bulk density pepper, which, in turn, is influencing Idukki dealers as well to reduce the price. The domestic demand continues to be steady except from cities of Chennai, Mumbai, Delhi, Ahmedabad where the demand has slowed down.
According to him, the pressure from Sri Lankan exporters for dumping their produce in India overcoming the MIP restrictions fixed by the Government is still continuing. The absence of required action from authorities have forced more importers to go ahead with such shipments, violating the rules.
IPSTA Kochi black pepper rates (₹/kg): MG1-330; ungarbled-310; 500 G/L-300.

 


V Sajeev Kumar for
thehindubusinessline.com 

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EXPORT OF PEPPER BY BRAZIL

June 26/2020
Brazil, known as one of the major pepper producing countries known for its Black Pepper, is reported to have a more competitive price as opposed to other origins. In recent year, Brazil has also surpassed Indonesia as the second largest pepper producer in the world with estimated quantity of 80,000 Mt in 2019. Brazil's increase of production could be contributed to the output of the first harvest of new plantation planted in 2017. Brazil, had also managed to take the second largest pepper exporter position from Indonesia in 2017.

In 2018, Brazil was reported to have exported a total of 72,580 Mt of pepper from which 99.8% or 72,456 Mt of it comprised of whole pepper and 0.2% or 124 Mt of it ground pepper. Brazil on average exported a total of 6,048 Mt per month in 2018 which peaked in November with 12,791 Mt. The highest pepper export in November was due to pepper harvest in Brazil during September-November. The total revenue of Brazil's export of pepper in 2018 was reported to be as high as USD 194.9 Million. Thus, recording the average price of the total pepper exported by Brazil at USD 2,687 per Mt for whole pepper and USD 1,952 per Mt for ground pepper.

Year 2019 saw an increase in term of quantity of pepper exported by Brazil. Brazil was reported to have exported a total of 84,676 Mt of which 99.9% or 84,607 Mt of it comprised of whole pepper and 0.1% or 68 Mt of it ground pepper, recording an increase of 17% when compared with 2018. The average export of pepper by Brazil in 2019 was reported to be at 7,056 Mt per month which peaked in October with 11,119 Mt.

Although increasing in terms of quantity, Brazil's revenue from pepper export was reported with a decrease by 8% as compared to the previous year to a total of USD 179.6 Million. Thus, recording an average price of the total pepper exported by Brazil at USD 2,121 per Mt for whole pepper and USD 1,766 per Mt for ground pepper or a decrease by 21% and 10% respectively as compared to 2018.

As of May 2020, Brazil was reported to have exported a total of 42,813 Mt which 99.8% or 42,741 Mt of it comprised of whole pepper and 0.2% or 72 Mt of it ground pepper. Thus, recording an increase of 8% when compared to the same period in 2019. As of May 2020, the total revenue of pepper export by Brazil was reported to have reached USD 82.0 Million, recording a decrease by 4% as compared to the same period in 2019. The average price of the total pepper exported by Brazil as of May 2020 was reported at USD 1,917 per Mt for whole pepper and USD 1,062 per Mt for ground pepper.

Pepper from Brazil is widely traded in America, Africa, Asia and European countries. As of May 2020, Brazil's top 5 Country of destinations for its pepper were reported to be United States of America with 5,911 Mt (an increase of 25% as compared to the same period in 2019), Morocco with 5,041 Mt (an increase of 73%), Viet Nam with 4,323 Mt (a decrease of 0.1%), Germany with 4,091 Mt (a decrease of 11%) and Egypt with 3,830 Mt (an increase of 66%). 

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IPC PEPPER MKT REPORT No. 26/20, 22 - 26 June 2020

LOCAL MARKET REPORT
Market this week showed mixed response as only Viet Nam and Sri Lanka origins were reported with a decrease. In local market, Malabar black pepper was reported stable at an average of USD 4,153 per Mt. Indonesia black and white pepper were reported with an increase of 3% and 1% respectively as opposed to the previous week averaging at USD 2,250 per Mt for black pepper and USD 3,164 per Mt for white pepper. The increase of Indonesia pepper locally could be contributed to the increase of demand as the price of Indonesia black and white pepper increased to an average of IDR 32,000 per Kg from IDR 31,000 per Kg in previous week for black pepper and IDR 45,000 per Kg from IDR 44,500 per Kg in previous week for white pepper. Malaysia black and white pepper in local market were reported with an increase of 4% and 2% respectively as compared to the previous week at an average of USD 1,909 per Mt for black pepper and USD 3,275 per Mt for white pepper. In contrast, Viet Nam black and white pep per were reported with 4% and 7% deficit respectively as opposed to the previous week averaging at USD 2,042 per Mt for black pepper and USD 2,854 per Mt for white pepper. Sri Lanka black pepper was reported with 2% deficit when compared to the previous week and was traded at an average of USD 2,643 per Mt. 

INTERNATIONAL  MARKET 
International market showed a similar trend as the local market. India black pepper was reported stable at an average of USD 4,417 per Mt. Indonesia black and white pepper were reported with an increase of 3% and 1% respectively as compared to the previous week averaging at USD 2,735 per Mt for black pepper and USD 3,757 per Mt for white pepper. Malaysia black and white pepper were reported with an increase of 2% and 1% respectively when compared to the previous week averaging at USD 3,420 per Mt for black pepper and USD 4,870 per Mt for white pepper. Furthermore, Viet Nam black pepper 500 g/l, 550 g/l and Viet Nam white pepper were reported with 3%, 3% and 1% deficit respectively as opposed to the previous week averaging at USD 2,408 per Mt, USD 2,488 per Mt and USD 3,760 per Mt respectively. 

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CASSIA PRICES EVOLUTION 2016-2020

INDONESIA CLOVES MKT INFORMATION

June25/2020

COVID cases are increasing by the day and there is no sign of plateau yet.
Currently there are about 48000 official cases with around 2500 deaths. Mind you, these are “official” statistics.
Meanwhile, due to the Dollar weakening and Fiscal Stimulus, IDR is getting stronger.
It went up all the way to 13900 and currently hovering around 14200 levels against the Dollar. Basically, a correction of about 7% in the short term and 14% in the Medium Term!

Island wise lockdown is still in force, although the new normal is underway in cities like Jakarta.
As a result of this, container, cargo as well as labor availability remains as a challenge.

Cloves:
Arrivals haven’t started yet.
Contrary to the belief of many that Indonesia will have another big crop like last year, it seems that it is not as big as was initially expected.
Making matters worse, there is an acute crisis of Labor.
Thumb rule is, at any growing area of Clove, there are more tree than people to pick the cloves. As a result of this, Clove owners tend to outsource people from adjoining islands during the picking season.
Now that most of the islands are following their self-imposed exile or 14 days of Quarantine, there is a strong possibility that net availability of cloves will remain low even at the peak season.
We also heard that one of the big boys has either started to purchase or will start soon. But the
exact time and quantity is difficult to predict.

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