Large cardamom prices soar amid Ramadan demand

One of the world’s most expensive spices was traded at Rs2,800 per kg in Birtamode, Jhapa, the key trading hub, last week.

Traders say production is expected to drop by 25 percent in Nepal due to a climate change-induced disease. Post File Photo

https://kathmandupost.com/money/2024/12/31/large-cardamom-prices-soar-amid-ramadan-demand

 

Post Report

Published at : December 31, 2024

Updated at : December 31, 2024 06:59

Kathmandu

Large cardamom prices have been rising, and market analysts say prices may go up further amid demand for the upcoming Ramadan, one of Muslims' holiest months of the year. The price rise has also been attributed to a fall in the output of spices in other producing nations like Bhutan and India.

Large cardamom, one of the world's most expensive spices, was traded at Rs2,800 per kg in the Birtamode, Jhapa, in eastern Nepal, the key trading hub, last week.

This year, the holy month of Ramadan is expected to begin on Friday, February 28, or Saturday, March 1, 2025. The exact timing is based on the sighting of the moon.

The local Muslim community uses large cardamom pods in popular biryani to symbolise prosperity and wealth.

Large cardamom prices reached a record high of Rs2,700 in 2014 but dropped to Rs850 in 2018, a dip of about 68 percent. The price again broke records in 2016, reaching an all-time high of Rs3,000 per kg. Prices began to decline steadily, sinking to a low of Rs700 per kg in mid-July 2022.

“As the price of large cardamom is on a rising trend, we have anticipated that prices will breach the previous record of Rs3,000 per kg in the coming days,” said Nirmal Bhattarai, president of the Federation of Large Cardamom Exporters, Nepal.

“With the price expecting to rise, farmers and traders have held around 60 percent of large cardamom.”

Large Cardamom has three types depending on quality.

The selected high-quality large cardamom is traded at Rs2,800 per kg, while the other quality is traded at Rs2,700 and Rs2,600 per kg, respectively.

India is the biggest buyer of Nepal’s large cardamom, absorbing 99 percent of its exports. The spice is re-exported to Pakistan and the Middle East, where it fetches high prices because of local preference for Nepali products.

Pakistan is the largest importer of large cardamom, purchasing roughly 60 percent of India’s exports. Pakistanis use large cardamom pods in biryani, a famous fried rice dish, to symbolise prosperity and wealth.

Nepali large cardamom or black cardamom has a distinct flavour profile due to a specific method of postharvest drying in bhattis (ovens), which explains the roasted smell and taste.

The smoky flavour would overwhelm a sweet cake or pudding, but in a spice rub for roasted meat or a full-flavoured stew, it imparts a smouldering depth no other spice can, according to experts.

Bhattarai said that as farmers and traders have held back the spice, the exact production from this year’s harvest is unknown.

However, the traders said that production is expected to drop by 25 percent in Nepal due to a climate change-induced disease. The disease has affected old and new saplings of large cardamom in the last two years.

According to the Agriculture Ministry statistics, Nepal produced 9,545 tonnes of large cardamom in 2019-20. Output dropped to 8,289 tonnes in 2020-21. The 2021-22 production rose slightly to 8,714 tonnes, and over 10,000 tonnes in 2022-23.

Nepal is the largest producer of large cardamom, accounting for 68 percent of the global production, followed by India and Bhutan.

The spice is grown in Sikkim, Darjeeling and Bhutan. Large cardamom was introduced in Ilam from Sikkim in 1865.

Large cardamom exports surged by 11.65 percent in the first five months of the current fiscal year, which ended in mid-December.

According to the Department of Customs, Nepal exported 2,074 tonnes of large cardamom worth Rs3.45 billion during the review period.

Shipment of large cardamom remained at Rs7.94 in the last fiscal year 2023-24.

Large cardamom is cultivated predominantly in four districts of eastern Nepal—Taplejung, Panchthar, Ilam, and Sankhuwasabha—which account for 87.04 percent of national production. Around 125,000 households are engaged in growing it.

October-November is the peak harvest season.

Large cardamom produced in Nepal is entirely organic and provides income to mostly low-income families in rural Nepal.

Farmers are expanding the large cardamom acreage beyond the eastern hill districts. The spice is also being grown in Dadeldhura and Lamjung.

Large cardamom is grown on 18,000 hectares in Nepal. Domestic consumption of large cardamom, however, is minimal.

Nepali large cardamom—also known as ‘black gold’ or ‘black cardamom’—belongs to the botanical family Zingiberaceae and is one of the most expensive spices in the world. According to a government report, it is an evergreen, perennial, and herbaceous plant grown on north-facing hill slo

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Pepper price forecast for tomorrow December 26, 2024

 

Domestic pepper prices will remain stable tomorrow.

Industry and Trade Newspaper

December 25, 2024

Pepper price forecast for tomorrow December 26, 2024, online pepper price, Dak Lak pepper price, Dak Nong pepper price, Binh Phuoc pepper price, Gia Lai pepper price, pepper price on December 26.

Guess domestic pepper price tomorrow, domestic pepper price tomorrow December 26, 2024 continues to remain stable and sideways. In addition, there will be slight market fluctuations in some countries due to supply fluctuations.

Today's pepper price was updated on the afternoon of December 25, 2024 as follows, domestic pepper price today after many sessions of decrease has remained stable and is anchored at a fairly high level. Currently, the average pepper purchase price in localities is 144,600 VND/kg.

Specifically, pepper prices today are at Gia Lai and province Binh Phuoc purchased at 144.000 VND/kg; Ba Ria - Vung Tau province is 145.000 VND; similar to pepper price in Dak Lak also purchased 145.000 VND/kg and pepper price in the province Dak Nong is 145.000 VND.

omestic pepper price updated on December 25, 2024

According to the Vietnam Pepper and Spice Association (VPSA), the pepper and spice industry is facing challenges from unpredictable weather conditions that increase investment costs and disease prevention. In addition, many farmers are switching to more profitable crops such as durian and coffee, reducing the pepper growing area and affecting total output.

The 2025 pepper crop in Vietnam will be harvested 1-2 months later than previous years due to the impact of prolonged drought, making pepper supply increasingly difficult.

Realizing the above situation, import markets have increased their purchases. Up to now, most of them have enough goods until the first quarter of next year. This has led to the current market being quite gloomy, low demand at the end of the year has prevented pepper prices from breaking out.

Farmers in Duc Trong district, Lam Dong province harvest pepper.

Domestic pepper prices have recently witnessed significant fluctuations, causing a lot of disruption for farmers and businesses. The main reason is due to fluctuations in supply and demand in the domestic and international markets, along with other objective factors such as weather, policies and consumer demand.

According to experts' predictions, the amount of pepper in the population is almost gone, only remaining in agents and warehouses of enterprises. Forecasts in the next 3-5 years, global pepper production will still not be enough to meet consumer demand, showing that pepper has entered a new price increase cycle.

Currently, Vietnam is one of the three largest spice producing and exporting countries. world with output accounting for more than 11% of the world's spice export market share. According to statistics, there are currently 35 pepper processing factories meeting ISO, HACCP, BRC, ESA, ASTA standards... with a processing capacity of about 140 thousand tons/year.

Update world pepper price today December 25, 2024

Guess world pepper price tomorrow December 26, 2024. According to the prediction, world pepper price tomorrow is likely to fluctuate slightly down.

Update on world pepper prices from the International Pepper Community (IPC) on the afternoon of December 25 as follows: After many sessions of strong increases, the pepper market has stabilized and decreased slightly. In particular, after a strong increase, Indonesian pepper prices have turned to decrease slightly, with 5 USD/ton; pepper prices in Malaysia and Brazil continue to remain stable.

Specifically, IPC listed the price of Indonesian Lampung black pepper at 6,835 USD/ton (down 5 USD/ton) compared to the previous trading session; the price of Muntok white pepper reached 8,945 USD/ton (down 5 USD/ton).

The price of Brazilian ASTA 570 black pepper continues to remain stable, currently at 6.275 USD/ton; the price of Malaysian ASTA black pepper is at 8.400 USD/ton, and the price of ASTA white pepper is at 10.600 USD/ton.

The export price of Vietnamese black pepper is stable and slightly decreased, currently reaching 6.400 USD/ton for 500 g/l and 550 USD/ton for 6.700 g/l; the price of white pepper is high at 9.600 USD/ton.

*The above pepper price forecast is for reference only, the actual price will be officially available tomorrow morning (December 26, 2024) on Congthuong.vn.

Sources: https://congthuong.vn/du-bao-gia-tieu-ngay-mai-26122024-gia-tieu-trong-nuoc-ngay-mai-di-ngang-366143.html

Update pepper price today December 18, 2024

 

Domestic pepper price today highest 146.500 VND/kg

Industry and Trade Newspaper

December 18, 2024

Update pepper price today December 18, 2024, online pepper price, Dak Lak pepper price, Dak Nong pepper price, Binh Phuoc pepper price, Gia Lai pepper price, pepper price 18/12.

Domestic pepper price today

Today's pepper price was updated at 4:30 am on December 18, 2024 as follows, domestic pepper price is stable, maintained at a fairly high level. Currently, the average purchase price in localities is at 146.100 VND/kg.

Specifically, pepper purchase price in the province Gia Lai at 145.500 VND/kg; similarly, pepper price in the province Binh Phuoc purchased at 146.000 VND/kg; Ba Ria - Vung Tau pepper price at 146.000 VND/kg; pepper price Dak Lak is 146.500 VND/kg and pepper price is at Dak Nong purchased at 146.500 VND/kg.

According to experts, pepper prices are still high and there is unlikely to be a sudden change in price due to the lack of new supporting factors. In addition, the price of this commodity is still under pressure as cash flows are pouring into the coffee business. In addition, factors such as the USD increasing by more than 1,5%, weak demand, etc. continue to restrain pepper prices. However, low supply and unfavorable weather in major pepper growing countries are predicted to world will help prices remain high, fluctuating between 145.000 - 147.000 VND/kg, with a slight upward trend this week.

The Import-Export Department (Ministry of Industry and Trade) forecasts that world pepper prices will remain high in the short term due to limited supply. In the long term, pepper export prices will still be supported, as Vietnam's output of this commodity in the 2025 crop is expected to decrease.

Pepper gardens are about to be harvested in Duc Trong district.

According to the assessment, in 2025, the main pepper crop in Vietnam will be harvested in February, in some localities it will last until March and April, and will be 2 to 3 months later than previous years due to the impact of prolonged drought.

Currently, to avoid risks in pepper cultivation, many farmers in Dak Doa district (Gia Lai) instead of choosing to grow pepper in the intensive "pepper" method, people now focus on models of intercropping and polyculture with coffee and fruit trees. Developing pepper in the direction of intercropping and polyculture will be sustainable, thereby reducing investment costs and limiting disease risks, aiming towards a Agriculture safe.

Pepper harvest in Duc Trong district, Lam Dong province

According to the Vietnam Pepper and Spice Association, pepper is almost gone from the population, remaining only in agents and warehouses of enterprises. It is forecasted that in the next 3-5 years, global pepper production will still not be enough to meet consumer demand. Agricultural experts also agree that pepper has entered a new price increase cycle. This cycle will last 10-15 years and prices may reach a historical peak, even over 300.000 VND/kg.

Vietnam's pepper and spice industry is increasingly asserting its position in the international market, becoming one of the leading suppliers of high-quality products such as pepper, cinnamon, star anise and many other spices.

World pepper prices today

Update on world pepper prices from the International Pepper Community (IPC) at 4:30 a.m. on 18/12 as follows: The world pepper market has stabilized after yesterday's price fluctuations. However, Vietnam's pepper export market decreased slightly compared to the previous session.

Specifically, IPC listed the price of Indonesian Lampung black pepper at 6.845 USD/ton and the price of Muntok white pepper at 9.050 USD/ton, unchanged from the previous session.

Similarly, the price of Brazilian ASTA 570 black pepper is currently at 6.350 USD/ton; Pepper prices in Malaysia continue to be stable compared to the previous trading session; the price of Malaysian ASTA black pepper is at 8.200 USD/ton, the price of ASTA white pepper is at 10.400 USD/ton.

The export price of Vietnamese black pepper remains stable at 6.300 USD/ton for 500 g/l, 550 USD/ton for 6.600 g/l; the price of white pepper is at 9.400 USD/ton and slightly decreased.

 

According to experts, the pepper market will have an improvement in price in the coming time when the demand for goods from the US market continues to help pepper prices stabilize. The price is still trading around 146.000 - 147.000 VND/kg and is likely to catch a new wave of increase. In addition, export demand from major markets such as the US and EU remains high, further supporting the market.

Sources: https://congthuong.vn/gia-tieu-hom-nay-18122024-gia-tieu-trong-nuoc-hom-nay-cao-nhat-146500-dongkg-364770.html

 

Pepper Market on December 12, 2024

 

Pepper Market on December 12, 20224: Price unexpectedly dropped by 2,000 VND

Pepper prices today (December 12) unexpectedly dropped by 2,000 VND. In the international market, pepper prices from Brazil and Indonesia both dropped. The US spent 409.16 million USD to buy pepper in the first 10 months of the year, mainly imported from Vietnam.

 

In the world market

According to an update from the International Pepper Association (IPC), at the end of the most recent trading session, the price of Indonesian Lampung black pepper continued to decrease slightly by 0.19% (13 USD/ton) compared to the previous trading session, down to 6,822 USD/ton.

Similarly, the price of Brazilian black pepper ASTA 570 also decreased by 0.4% (25 USD/ton), down to 6,250 USD/ton.

Meanwhile, the price of Kuching black pepper from Malaysia remained stable at USD 8,200/ton. The  export  price of 500 g/l and 550 g/l black pepper  from Vietnam was around USD 6,300 – 6,600/ton.

At the same time of survey, the price of Indonesian Muntok white pepper decreased by 0.2% (18 USD/ton), down to 9,115 USD/ton.

Meanwhile, Vietnamese white pepper and Malaysian ASTA white pepper remained unchanged at USD 9,400/ton and USD 10,400/ton.

 

Update pepper information

Figures from the US International Trade Commission (USITC) show that in October, the US imported  7,211   tons of pepper of all kinds from the world, down 26.4% compared to the previous month but up 21% compared to the same period last year.

Accumulated from the beginning of the year to the end of October, pepper imports of the world's leading consumer country reached 80,298 tons, worth 409.16 million USD, up 40.9% in volume and 56.6% in value over the same period last year.

Of which, Vietnam continues to be the largest pepper supplier to this market, accounting for 77.4% of total pepper imports into the US with a volume of 62,158 tons, worth 314.4 million USD, up 40.7% in volume and 62.5% in value over the same period last year.

In addition, the amount of pepper imported by the US from other leading supplying markets also increased in the first 10 months of the year, such as: India reached 6,359 tons, up 25% and accounting for 7.9% of the market share; Indonesia reached 6,046 tons, up 90.3% and accounting for 7.5%; Brazil reached 3,178 tons, up 73.8% and accounting for 4%...

US pepper imports have rebounded sharply after two consecutive years of decline due to cooling  inflation   and loose monetary policy, leading to a recovery in demand.

In addition, importers also increased their stockpiles due to concerns about changes in economic policies after the US presidential election.

US President-elect Donald Trump plans to raise import taxes and cut taxes on individuals and businesses – as he did in his previous term. During his campaign, Trump vowed to impose a 10-20% import tax on all goods entering the US. The figure for China alone is 60-100%.

Currently, US importers are stepping up imports of goods before Mr. Donald Trump returns to the White House.

According to VietnamBiz.vn

 

Pepper Market on December 3, 2024

 

Pepper Market on December 3, 2024: Shocking price drop in all provinces

Pepper prices today, December 3, are around 142,000 - 143,000 VND/kg, down sharply by 4,000 - 5,000 VND in key pepper growing provinces. IPC adjusted the price of Indonesian pepper in opposite directions while it decreased in Malaysia. It is estimated that pepper exports could reach 1.4 billion USD this year. This is a new record for the industry.

At the end of the most recent trading session, the International Pepper Community (IPC) listed the price of Lampung black pepper (Indonesia) at 6,679 USD/ton, up 0.78%; the price of Brazilian black pepper ASTA 570 at 6,150 USD/ton; the price of Kuching black pepper (Malaysia) ASTA at 8,300 USD/ton, down 1.2%.

Muntok white pepper price is 9,115 USD/ton, down 0.31%; Malaysian ASTA white pepper price is at 10,500 USD/ton.

Vietnam black pepper price is traded at 6,200 USD/ton for 500 g/l; 550 g/l at 6,500 USD/ton; white pepper price is at 9,400 USD/ton. IPC adjusted the price of Indonesian pepper in the opposite direction while it decreased in Malaysia.

Ms. Hoang Thi Lien - President of the Vietnam Pepper and Spice Association (VPSA), estimated that Vietnam's pepper exports could reach 1.4 billion USD this year. This is a new record for the industry. The result is that recently, pepper prices have been in an increasing cycle and are currently maintaining a level nearly double that of previous years.

Currently, the country has more than 115,000 hectares of pepper and spice crops, mostly concentrated in the South Central Coast - Central Highlands region with more than 75,300 hectares. The pepper industry is facing many challenges. Among them are climate change, shrinking area, investment costs in irrigation and disease prevention to maintain productivity... which have a significant impact on competitiveness.

Currently, according to experts, pepper prices have passed the decline cycle and are starting an increase cycle due to a decrease in supply. However, due to the low purchasing pressure at the beginning of the season, farmers should not be too eager to sell pepper early, especially should not borrow capital to store pepper to avoid risks due to market fluctuations.

According to VietnamBiz.vn

Pepper Market November 27, 2024: Vietnamese pepper dominates the US market

 

Pepper Market November 27, 2024: Vietnamese pepper dominates the US market

Pepper prices today, November 27, range from 141,000 to 142,000 VND/kg, up 1,000 VND compared to yesterday. Vietnam is the largest pepper supplier to the US market, accounting for 77.8%, reaching 56,820 tons, up 42.9%; followed by India, accounting for 7.8%, reaching 5,699 tons, up 27.5%.

At the end of the most recent trading session, the International Pepper Community (IPC) listed the price of Lampung black pepper (Indonesia) at 6,596 USD/ton, down 0.42%; the price of Brazilian black pepper ASTA 570 at 6,050 USD/ton, up 50 USD/ton; the price of Kuching black pepper (Malaysia) ASTA at 8,400 USD/ton.

Muntok white pepper price is 9,101 USD/ton, down 0.42%; Malaysian ASTA white pepper price is at 10,500 USD/ton.

Vietnamese black pepper prices are trading at 6,200 USD/ton for 500 g/l; 6,500 USD/ton for 550 g/l; and 9,400 USD/ton for white pepper. IPC adjusted down Indonesian pepper prices right after the increase at the beginning of the week.

The International Pepper Community commented that the market last week showed mixed reactions when only domestic black pepper prices in Sri Lanka continued to record increases.

Indian domestic and export pepper prices recorded a decline last week.

As the Indonesian Rupiah depreciated by 1% against the USD (IDR 15,875/USD), both domestic and export pepper prices recorded a decrease last week.

Both domestic and export pepper prices in Malaysia continued to decline since last week, partly due to the impact of the 2% depreciation of the Malaysian Ringgit against the USD (MYR 4.47/USD).

Prices of Brazilian black pepper as well as Chinese white pepper recorded a decrease last week. Meanwhile, prices of Cambodian black pepper were stable.

According to the Vietnam Pepper and Spices Association, in the first 9 months of 2024, the US imported 73,080 tons of pepper, with a total import turnover of 376.4 million USD. Compared to the same period last year, the import volume increased by 43.2% and the turnover increased by 56.1%.

Vietnam is the largest pepper supplier, accounting for 77.8%, reaching 56,820 tons, up 42.9%; followed by India, accounting for 7.8%, reaching 5,699 tons, up 27.5%. Indonesia and Brazil ranked 3rd and 4th, accounting for 7.1% and 4.2%, reaching 5,174 tons and 3,054 tons, up 88.4% and 88.8% over the same period in 2023.

According to KTĐT.vn

Pepper Market November 25, 2024 - Update pepper information

 

Pepper Market November 25, 2024: Prices increased slightly at the beginning of the week

Posted onNovember 25, 2024by VPA

November 25

Pepper prices today (November 25) fluctuated between 140,000 - 141,000 VND/kg, a slight increase on the first day of the new week.

 

Update pepper information

In a recent report, Ptexim said demand remained weak in major markets such as the US, EU, Middle East and China.

 The ongoing coffee  harvest season  attracts investors’ attention and capital, which could cause cash flow to shift away from pepper. This competition for investment could lead to a reduction in focus on pepper production and trading, contributing to the already recorded price decline.

In 2024, Vietnamese coffee prices are also at a good level and this is Vietnam's main harvest season. At the same time, this is also the time when countries around the world focus on buying coffee from Vietnam.

However, pepper inventories have been sharply reduced, with current stocks being held mainly by a small number of dealers and import-export companies  .  Therefore, Ptexim predicts that the upcoming market trend could witness significant volatility, especially as inventories are low and there are signs that the upcoming crop will be reduced.

According to recent surveys, Ba Ria – Vung Tau, one of the main pepper growing areas in Vietnam, has recorded a sharp decline in pepper production of about 50%. This severe decline is attributed to many factors, of which climate change is the most important cause. Unpredictable weather patterns, including irregular rainfall and extreme temperatures, have negatively affected the growth and productivity of pepper plants.

Tariffs proposed by US President-elect Donald Trump could encourage US importers to boost purchases before the tariffs are imposed, which could lead to a sharp increase in container shipping rates.

The urgent and increased demand for imports is likely to cause a sharp increase in ocean freight costs in 2025. However, by 2026, we could see a significant decline in these costs as the US works to reduce its inventories.

According to VietnamBiz.vn