Domestic Pepper Prices Decline Amid Stable Vietnamese Market

New Delhi, February 23 (Commodities Control): Domestic pepper prices in major domestic markets have witnessed a further decline by Rs 400 per quintal due to subdued demand. In contrast, Vietnamese prices have remained stable, experiencing a rise in the previous session. Domestic prices have registered a drop of Rs 7,000-7,200 per quintal since reaching their peak last month.

Garbled pepper prices in Cochin were reported at Rs 54,400 per quintal, while ungarbled peppers were priced at Rs 52,400. Karnataka recorded pepper prices ranging between Rs 52,200 and Rs 54,600 per quintal. The combination of increased output and lower export inquiries is contributing to the downward pressure on domestic prices.

Indian pepper production is anticipated to reach 70,000 tons, reflecting a year-on-year increase of 3,000 tons from the previous season. The export and import data for December indicate a 5% rise in exports at 1,440 MT. Imports have surged by 20.4% year on year to 3,132 MT, primarily due to stronger imports from Vietnam and Brazil. Imports from Vietnam have soared by 728% year on year.

Pepper prices in Vietnam's major markets have remained stable, ranging from VND 87,000 to VND 90,000 per kg, following a surge in the previous session. The expected decrease in production in Vietnam is supporting domestic pepper prices. Vietnam's production in 2024 is projected to be 170,000 tons, reflecting a 10.5% year-on-year decrease. This decline is attributed to reduced acreage and yields, leading to lower production. The harvesting process, which has just commenced, is more dispersed than last year, contributing to higher prices in local markets.

Global FOB prices are expected to remain stable, except in Indonesia, where prices have seen a marginal increase.

Domestic Quotes (INR/Qtl):
- Kochi Ungarbled: 52,400
- Kochi Garbled: 54,400
- Kushalnagar: 52,500-54,600
- Chikamagalore: 52,300-54,500

FOB Quotes - Black Pepper:
- Brazil ASTA (USD/MT): 4,350
- Vietnam 500gl (USD/MT): 3,900
- Vietnam 550gl (USD/MT): 4,000
- Indonesia ASTA (USD/MT): 3,922
- Malaysia (Ringgit/MT): 4,900