Global pepper prices double in a year

Pepper looks like being costlier in global markets this year, with Vietnam asking almost double last year’s price for its fresh stock of black pepper.

It is quoting $5,000-5,050 a tonne for the ASTA grade, compared to $2,750-2,800 at the beginning of the last season. Vietnam is the world’s largest producer and exporter of the spice and is expected to have a crop size of 100,000 tonnes this season.

Importers in the US and Europe aren’t convinced and are holding back their orders, a prominent exporter told Business Standard. He said the US could wait for another four to six weeks, as it had imported more pepper in 2010. The market expects US imports would be active only by the end of next month. Some, in fact, say the US demand would pick up only by the middle of the year.

The US imported 52,014 tones of black pepper in 2010, as against 49,148 tones in 2009.

Though harvesting in Kerala is active, arrival at wholesale markets is low, compared to last season. A change is expected by next month, once harvesting in Karnataka picks up.

India currently offers $5,350 a tonne for ASTA grade, but isn’t having much of takers abroad. The tags of all leading producing countries are above the $5,000 mark.So, the average yearly price seems likely to be on a higher mode this year.

(Source: http://www.business-standard.com/india/news/global-pepper-prices-double-inyear/425557/)