Pepper price today June 13, 2024, explaining the phenomenon of skyrocketing prices, continuously setting records, growers are rushing to sell

Pepper price today, June 13, 2024 in the domestic market continued to increase sharply in some key localities, trading from 176,000 - 180,000 VND/kg.

Pepper price today June 13, 2024, explaining the phenomenon of skyrocketing prices, continuously setting records, growers are rushing to sell. (Source: Times of India)

Pepper prices today, June 13, 2024, in the domestic market continued to increase sharply in some key localities, trading from 176,000 - 180,000 VND/kg.

Specifically, pepper price today in Gia Lai is at 176,000 VND/kg.

Pepper prices today in the provinces of Dong Nai (176,000 VND/kg); Dak Lak (179,000 VND/kg); Dak Nong (180,000 VND/kg); Ba Ria - Vung Tau (176,000 VND/kg) and Binh Phuoc (176,000 VND/kg).

Thus, domestic pepper prices today continued to increase sharply in most key localities compared to yesterday, an increase of 7,000 - 9,000 VND/kg. The highest pepper price was recorded at the important mark of 180,000 VND/kg.

Domestic pepper prices have maintained a strong upward trend, lasting for nearly 2 weeks, continuously setting new record highs. According to industry experts and pepper purchasing agents, the current "hot" increase is partly due to Chinese traders starting to buy pepper again after a long absence.

Although the purchasing level is not much, it still promotes the market to become more vibrant, especially in the context of scarce pepper supply and countries that use a lot of Vietnamese pepper have continuously increased purchases since the beginning of the year such as the US, EU...

In May 2024, Vietnam's pepper exports to China reached 3,137 tons, 4.8 times higher than the previous month and the highest level in 11 months.

With pepper prices now double that of the beginning of this year, many pepper growers have begun to consider selling part of the previous season's pepper, which has been stored in warehouses.

Pepper prices in the world and in Vietnam have increased sharply because Brazil and Vietnam, the two countries that determine global supply, are experiencing a decline in output due to El Nino causing drought. Supply in Indonesia, India, Malaysia, and Sri Lanka is also limited. According to assessments, in the long term, in the next 3-5 years, the amount of pepper produced will not be able to meet the world's consumption demand.

Other factors besides supply and demand that have pushed pepper prices up include ocean freight rates. The global container index, which represents spot container freight rates on major international shipping routes, has returned to its peak during the Covid-19 pandemic.

Shipping market research firm Linerlytica said that ports in Southeast Asia are becoming the “most serious bottleneck” for the world’s maritime transport, with 26% of global container capacity stuck in the region.

This has been embedded in the cost of products, causing goods to increase in recent times. In addition, domestic speculation is also considered one of the main causes of the current price increase.

In the world market, at the end of the most recent trading session, the International Pepper Community (IPC) listed the price of Lampung black pepper (Indonesia) at 6,449 USD/ton, down 0.03%; the price of Brazilian black pepper ASTA 570 at 8,500 USD/ton; the price of Kuching black pepper (Malaysia) ASTA remained at 4,900 USD/ton.

Muntok white pepper price is 8,417 USD/ton, down 0.04%; Malaysian ASTA white pepper price remains at 7,300 USD/ton.

Vietnam's black pepper price is trading at 7,800 USD/ton for 500 g/l, up 16.67%; 550 g/l is at 8,000 USD/ton, up 16.25%; white pepper price is at 12,000 USD/ton, up 20.83%. The International Pepper Community has increased Vietnam's pepper export price sharply while slightly decreasing Indonesian pepper.

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