Pepper prices remain low despite undergoing slight increase

Despite experiencing an upward trend in recent weeks, pepper prices in the Central Highlands and the southern region have remained low in comparison with previous years, according to the Import-Export Department under the Ministry of Industry and Trade.

The most notable example is of the price of black pepper in Chu Se district of Central Highland Gia Lai province which saw an increase of 7.2% to VND37,000 per kilo, while the price of peppers in Ba Ria - Vung Tau province in the south rose by 5.3% to VND39,500 per kilo.

Furthermore, white pepper products have been trading at VND59,000 per kilo, representing an increase of 1.7% in comparison to the figures seen in late March, but much lower than the figure of VND71,000 per kilo which was seen during the same period last year.

The Import-Export Department reported that pepper exports in April are estimated to have reached 40,000 tonnes with a value of US$80 million, representing a slight decline of 0.7% in volume and 3.7% in value in comparison to March.

During the four-month period, the country exported a total of 121,000 tonnes of pepper for US$256 million, an increase of 11.9% in volume, but an annual drop of 9.4% in value.

Throughout the duration of the year, the country’s pepper supply source is expected to reach approximately 350,000 tonnes, of which roughly 90,000 tonnes will be from the inventories from last year.

At present, the demand for pepper is coming from a few select markets, although demand from the United States and various EU nations has so far remained limited due to the impact of social distancing restrictions and the temporary suspension of business services as a means of preventing the spread of the novel coronavirus (COVID-19) epidemic. As a result, the global pepper market is forecast to face hurdles in the near future.

With the COVID-19 pandemic greatly affecting the country’s pepper export activities, the domestic pepper industry has been forced to change the structure of its export products, move to upgrade the processing stage to enhance product value, and boost its competitiveness in the world market.