Rising temperature, production-drop push up cardamom prices

 

 

 

Updated - April 25, 2024 at 02:08 PM.

Traders say the shooting up of prices is due to the absence of sufficient rains in the production centres during the last three months and the rising temperature to the optimum level of 34-35 degree Celsius

By V Sajeev Kumar

Cardamom prices has started moving northwards to reach ₹2000 reportedly because of lower production in the prevailing sultry weather.

Cardamom prices has started moving northwards to reach ₹2000 reportedly because of lower production in the prevailing sultry weather.

Prices in the first week of March was in the range between ₹1300-1400.

Traders attributed the reasons for the prices to shoot up to the absence of sufficient rains in the production centres during the last three months and the rising temperature to the optimum level of 34-35 degree Celsius.

This has hit the crop very badly, leading to drying up of tillers and panicles. Such damages to the plant are likely to have an impact on the crop in the next season.

Earlier, planters have their own water resources to irrigate the land. However, the drying up of water levels in their land in the extreme heat conditions also hit irrigation of plants. In all probability, the next harvest season for July-August will depend on the availability of continuous rains for at least a couple of days, traders said.

However, the rising prices seem to have not derived any benefit to majority farming community and it helped those traders who procured the commodity at the time of declining prices. Fearing a further drop in prices with the starting of summer showers, many small traders did not procure enough quantity.  

The plant damage for current year is estimated at 20 per cent which is likely to go up if the growing areas face further scarcity of summer showers in the coming days, they pointed out.

According to auctioneers, the market is witnessing a subdued demand after Ramadan and is likely to pick up in July-August. 

On the export front, the market is witnessing a subdued demand especially from the Gulf nations after Ramadan. However, the drought conditions in Guatemala have affected their crop badly, bringing the prices on par with Indian raw material. Guatemala has seen a sharp fall in crop to around 30,000 tonnes this year from 54,000 tonnes last season.

 

Pepper prices today decreased slightly compared to yesterday.

 

BREAKING NEWS , Domestic news , NEWS

Pepper market on April 24, 2024, prices decreased slightly

Posted onApril 24, 2024by VPA

24
Apr

Pepper prices today decreased slightly compared to yesterday.

Domestic pepper prices

Among them, traders in Dak Lak, Ba Ria - Vung Tau and Binh Phuoc are purchasing pepper at the highest price of 97,000 VND/kg.

The transaction level of 97,000 VND/kg continued to be recorded in Gia Lai and Dak Nong provinces.

The current lowest pepper price is 96,500 VND/kg, available in Dong Nai province.

Province/district (survey area)	Purchasing price (Unit: VND/kg)	Change compared to yesterday (Unit: VND/kg)
Dak Lak	97,000	-1,000
Gia Lai	96,000	-1,000
Dak Nong	96,000	-1,000
BA Ria Vung Tau	97,000	-1,000
Binh Phuoc	97,000	-1,000
Dong Nai	96,500	-500

World pepper prices

According to an update from the International Pepper Association (IPC) on April 23 (local time), the price of Lampung black pepper (Indonesia) decreased by 0.13%, the price of Brazilian black pepper ASTA 570 and Kuching black pepper (Malaysia). ) ASTA remains stable compared to April 22.

Type name	World black pepper price list (Unit: USD/ton)
	April 22	April 23	% change
Lampung black pepper (Indonesia)	4,578	4,572	-0.13
Brazilian black pepper ASTA 570	4,450	4,450	0
Kuching black pepper (Malaysia) ASTA	4,900	4,900	0

At the same time of the survey, Muntok white pepper prices decreased by 0.13%, while Malaysian ASTA white pepper prices had no new adjustments.

Type name	World white pepper price list (Unit: USD/ton)
	April 22	April 23	% change
Muntok white pepper	6,046	6,038	-0.13
ASTA Malaysian white pepper	7,300	7,300	0

On the world market, Brazil's offered black pepper price increased by 37.6% in the first quarter of the year, while Indonesia and Vietnam increased by 13% and nearly 8%, respectively.

Similarly, the price of black pepper in Vietnam's domestic market in the first quarter also increased by 16 - 18.6% to 92,500 - 96,000 VND/kg, the highest level in the past 7 years. Then the price was adjusted down to 89,000 - 92,000 VND/kg in the first half of April, but still about 40% higher than the same period last year.

The Vietnam Pepper and Spice Association (VPSA) forecasts that this year's output is expected to decrease by 10% to about 170,000 tons compared to last year, the lowest level in the last 5 years.

Meanwhile, severe drought, especially in key pepper production areas in the Central Highlands region, may affect the upcoming crop.

VIETNAM - Pepper market April 22, 2024: Pepper price forecast this week is optimistic

 

Pepper price today April 22 is in the range of 96,500 - 98,000 VND/kg. This year's dry season is extremely hot and has prolonged drought, causing many crops such as pepper to lose productivity and decline. This is one of the main reasons why prices have increased recently.

In Dak Lak province,  today's pepper  purchase price is 98,000 VND/kg.

In Dak Nong province, today's pepper purchase price is 97,000 VND/kg.

In Gia Lai province, today's pepper price is at 97,000 VND/kg, an increase of 2,500 VND/kg.

Meanwhile in Dong Nai, today's pepper price is at 96,500 VND/kg.

In Ba Ria - Vung Tau province, pepper price today is at 98,000 VND/kg.

In Binh Phuoc province, today's pepper price is purchased at 98,000 VND/kg.

Pepper prices today remained stable in localities compared to the same time yesterday. Summarizing last week, domestic pepper prices increased by 7,500 - 8,500 VND/kg. Compared to the beginning of the month, pepper prices increased by an average of 3,000 - 4,000 VND/kg.

From the second half of April 2024, the amount of pepper reserves purchased at low prices in February 2024 has almost run out, causing importers to increase purchases again. Along with that, the Muslim month of Ramadan ends, the Indonesian market returns, making transactions more exciting.

According to experts, this year's dry season is extremely hot and prolonged, causing many crops such as coffee, pepper, cashew, etc. to lose productivity and decline. This is one of the main reasons why the prices of Vietnamese agricultural products have increased recently.

According to information in the press, Mr. Ho Van Giao, a pepper farmer in Hamlet 5, Lam San Commune (Cam My District, Dong Nai Province), said that since September last year, the weather has begun to enter the dry season. The peak heat wave begins in February 2024, much earlier than every year. Now returning to Lam San, it is very difficult to find a lush pepper garden, especially in Hamlet 5, where the drought is worse than other areas.

Currently, irrigation water sources for pepper farmers in Lam San and many surrounding areas are very stressful because they depend on drilled wells. In the dry season, this water source is seriously reduced. The long-term solution is to preserve underground water sources. If you want to preserve groundwater, you must preserve soil, because soil and water go hand in hand.

Lam San is a typical example, like many other key pepper growing areas in the Central Highlands, facing a shortage of irrigation water. Some localities recorded a sharp increase in traders purchasing dead pepper roots to use as oriental medicine.

In the above situation, according to experts, this week the market will still maintain its upward momentum, possibly reaching 100,000 VND/kg. The selling force will be high when pepper prices reach their peak. In the medium term, the growth potential of Vietnamese pepper is still very large. Because Brazil and Indonesia have almost no additional supply until August.

According to KTĐT.vn

VIETNAM - Pepper prices skyrocketed

Pepper price is currently reaching 98,000 VND/kg, an increase of about 9,000 VND/kg compared to last week and is likely to exceed 100,000 VND/kg this week.

Currently, pepper harvesting is in progress   in many localities in the Southeast and Central Highlands. The increase in pepper prices during this period is surprising because normally when the harvest is in full swing, prices decrease.

 

 

 The lowest  pepper price is 97,000 VND/kg in Dong Nai ,  Dak Nong  and  Gia Lai . In  Binh Phuoc , Ba Ria-Vung Tau,  Dak Lak ,  the price is up to 98,000 VND/kg. Compared to the same period last year, pepper prices are currently about 33,000 VND/kg higher.

Pepper prices increased sharply  due to limited supply due to prolonged heat, affecting the current harvest output. Besides, pepper is often intercropped in  coffee gardens  , so these two items are closely related in price. Normally, people will sell coffee when the price is high to prepare money to store pepper. This year, coffee prices have only increased but not decreased and are currently more than 20,000 VND/kg higher than pepper prices. Therefore, many people continue to hold on to pepper and refuse to sell it with the expectation that the price will increase sharply in the near future like coffee. This causes the supply of pepper on the market to be low.

According to the General Department of Customs, in March,  pepper exports  reached nearly 26,000 tons, worth 117 million USD; decreased 27.5% in volume but increased nearly 5% in value. The average export price of pepper in March reached 4,305 USD/ton, up 44.5% over the same period in 2023.

In the first 3 months of 2024, Vietnam's pepper exports reached 57,000 tons, worth 236 million USD; Reduced by 25% in volume but increased by 1% in value. The average export price of pepper reached 4,153 USD/ton, up 35.5% over the same period in 2023.

According to experts, recently  the prices of durian  and  coffee have increased higher  than the price of pepper, causing the area and output of these products to decrease and prices to increase. Besides, factors such as harsh weather,  political instability  in many places affecting goods transportation, exchange rate fluctuations... also have a strong impact on pepper prices. With the current trend, pepper prices are likely to increase because they have to compete in economic efficiency with strong competitors such as durian and coffee.

According to Thanhnien.vn

Pepper market reports BY Nhuan Ho

 

 

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Coffee and Pepper Prices, let's move up together

Pepper market reports

In March – Because in February, customers bought large quantities that is enough for March, This year Ramadan came too early, so demand in March decreased a bit from 96k/kg to 91 k/kg. Along with support for the increased USD exchange rate So the export price offered decreases - Customers were waiting to buy at a lower price in Mar

At the end of April 15, Ramadan ends and Qingming Festival in China ends. Purchased Stock pepper at low price in February is almost used up. Demand in the entire market is gradually increasing, China is buying white pepper, the Middle East is buying, and Europe is buying.

Special There is a big event in the US taking place from April 16-18, the ASTA Conference is at Tucson, Arizona, with the presence of many large importers and exporters in the world such as: Mccormick, Elite, Griffith , Terrova, FUCHS, BG, OLAM, NEDSPICE, HARIS SPICE….. along with many exporters present at the Asta conference such as PS, Pearl, Haprosimex, DK, Synthite, Plant lipid….. according to knowledgeable people at conference, more than 10,000 tons of pepper were bought and sold here during these 3 days.

Combined with the demand of other markets, EU, Asia, Middle East, Africa, China, this will be a pretty good push for the upcoming bull market.

Another very important factor, currently Brazil and Indonesia have almost no crop, until August. Prices of Brazil and Indonesia are currently higher than Vietnam, importing goods to Vietnam is almost impossible. Brazilian price for asta 570 gl is 4450 usd/mt cnf Ho Chi Minh, Indonesia Lasta is 4700 usd.mt cnf Ho Chi Minh

The El Nino phenomenon globally is very serious, the 2024 crop in these countries is expected to lose about 25-35% of output stock pepper. Causes the need for 2024 inventory to increase greatly, as is happening with Coffee

The weather in Vietnam's raw material areas is very negative, prolonged hot weather, and many pepper trees die. According to information, traders buy dead pepper roots (to make traditional Chinese medicine). The output of dead pepper roots has increased by 100% compared to every year. Thus, the amount of inventory for the 2025 crop will decrease sharply

In addition, coffee prices have increased continuously and very strongly in the past week, which will be a factor to guide pepper Price towards 120,000 VND/kg in May-June.

Coffee farmers are currently very rich, and those involved, are buying huge stocks pepper in the hope of good profits for 2024.

BY Nhuan Ho

 

https://www.facebook.com/nhuanho1985 

 

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VIETNAM PEPPER UPDATE 2

 Update pepper information

In a recent document sent to the Government, the Vietnam Pepper and Spice Association (VPSA) said that Vietnam is still ranked top 1 in the world in pepper production and export. However, in the context of competition and favorable market fluctuations for other crops such as coffee and durian, the area and output of Vietnamese pepper are decreasing.

The association said this year's pepper output is expected to decrease by 10% to about 170 thousand tons compared to last year, the lowest level in the last 5 years.

This agency is concerned that the level of competition from rival countries will become increasingly fierce, especially Brazil. Accordingly, this country has had a breakthrough in the last 5 years from 80 thousand tons in 2018 and is now expected to reach 100 thousand tons in 2024. This country's exports reach 80 thousand tons in 2023.

“Therefore, all efforts and support need to be focused on pepper to ensure stable area and output. Vietnam continues to take the initiative, playing a role in regulating world market prices as it currently does. today,” VPSA said.

In addition, VPSA hopes that state agencies will support and mobilize foreign partners to consider expanding investment activities in Vietnam.

The association said that the global corporation McCormick (USA) currently invests in many countries such as India, China and some European countries. This is also the largest importer of US spices. In 2023, the US will import 54 thousand tons of Vietnamese pepper, accounting for 20.5% of exports to markets. Of which McCormick imported 3.5 thousand tons.

However, this business has not expanded its investment in Vietnam even though it is the partner importing the most pepper. This company is currently just stopping being a partner and choosing a number of large companies to supply pepper for export to the US market.

According to VietnamBiz.vn
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FDI enterprises are the leading pepper exporters in Vietnam

 

According to VPSA data, VPSA enterprises accounted for nearly 90% of Vietnam's total pepper exports in the first quarter with a volume of 50,918 tons, an increase of 16.8% over the same period. In contrast, businesses outside VPSA only exported 5,794 tons, a sharp decrease of 82.5% and accounting for 10.2%.

Two foreign-invested enterprises, Olam Vietnam and Nedspice Vietnam, ranked first and second respectively in the ranking of Vietnam's largest pepper exporters.

In the first quarter, Olam Vietnam's pepper exports increased sharply by 50.4% to 5,792 tons. Similarly, Nedspice Vietnam also increased by 24.5%, reaching 5,245 tons.

Vietnamese enterprises ranked in the next positions include Tran Chau and Phuc Sinh, with volumes decreasing by 27.5% and 4.7% respectively...

Some businesses said that in addition to the burden of increased raw material costs, pepper export businesses are also greatly affected by high transportation costs due to escalating tensions in the Red Sea region, especially on the route to the EU. – where 20% of Vietnam's pepper is consumed.