Pepper price today September 26, 2023, tight supply, 2 comments on the upward trend of domestic pepper prices in the coming time

Pepper prices today in the domestic market increased slightly in some key localities, trading from 70,000 - 73,000 VND/kg.

Pepper price today September 26, 2023, tight supply, 2 comments on the upward trend of domestic pepper prices in the coming time. (Source: Case of Cooking)

Pepper prices today in the domestic market increased slightly in some key localities, trading from 70,000 - 73,000 VND/kg.

Specifically, pepper price today in Gia Lai is at 70,000 VND/kg.

Pepper prices today in Dong Nai province (70,500 VND/kg); Dak Nong, Dak Lak (71,000 VND/kg); Binh Phuoc (72,000 VND/kg) and Ba Ria - Vung Tau are at the highest level of 73,000 VND/kg.

In the first 8 months of 2023, pepper exports reached 188,059 tons, up 17% in volume (equivalent to 27,359 tons) over the same period last year. However, due to lower export prices than the same period, the turnover decreased by 13.8% to 615.5 million USD.

Pepper exports to some major markets increased quite strongly in August compared to the previous month, such as the US increased by 34.3%, the UAE increased by 123.6%, India increased by 204.8%, the Philippines increased by 36.9%, Thailand increased by 26.6%, especially Egypt increased by 8.5 times and Pakistan increased by 9.7 times... On the contrary, China continued to decrease by 25.2%, Germany decreased by 32.7%, the Netherlands decreased by 21.1%.

However, in the first 8 months of the year, China surpassed the US to become our country's largest pepper export market, with a volume of 53,792 tons, a sudden increase of 5.5 times compared to the same period last year.

For more than 8 months of 2023, our country has exported more than its production output. The export volume in the last months of the year will depend on the amount of imported pepper and inventory in the reserve warehouse. It is forecasted that in the first 4 months of 2024, the amount of pepper exported will be at least 80 thousand tons more.

Thus, the supply is quite tight compared to actual demand until the new crop is released to the market (March-April 2024). Based on the above supply and demand data, there are currently 2 comments on the increasing trend of pepper that are popular on some forums of Vietnamese pepper growers.

Accordingly, the first assessment is that because the current supply is not abundant but the foreign customers' inventory is not yet depleted, the tug of war continues. If foreign customers buy from now, the price will gradually increase until the season comes.

Second, if foreign customers save their buying needs for when Vietnam enters the new crop season, prices will increase sharply right in the middle of harvest time.

In the world market, according to The Hindu Business Line , increased imports have kept black pepper prices stable in the Indian market for the past few days, thereby affecting consumption demand.

As against the domestic price of Rs 631/kg for ungraded pepper, the consuming markets in North India are said to have received imports at Rs 600-625/kg.

This has significantly reduced domestic demand for pepper from the states of Kerala, Karnataka and Tamil Nadu, according to traders.

The Indian market's pepper output in 2024 is expected to reach around 50,000 tonnes and this is likely to boost pepper imports into the country further.

In addition, speculative buying in recent times has pushed pepper prices to new heights.

Source