Pepper price today August 14, 2024: Unexpected reversal, the reason for the price increase in the domestic market is not as expected. (Source: Public Goods Blog)

Pepper prices today, August 14, 2024, in the domestic market turned to decrease sharply in localities.

key areas, transactions from 137,000 - 138,000 VND/kg.

Specifically, pepper price today in Gia Lai is at 137,000 VND/kg.

Pepper prices today in the provinces of Dong Nai (137,000 VND/kg); Dak Lak (138,000 VND/kg); Dak Nong (137,500 VND/kg); Ba Ria - Vung Tau (137,000 VND/kg) and Binh Phuoc (137,000 VND/kg).

Thus, after a day of sideways movement, domestic pepper prices today turned sharply down in key localities. The highest pepper price was at 138,000 VND/kg.

Commenting on this downward session, experts said the market continued to fluctuate strongly like last week. After a period of maintaining the threshold of 145,000 - 150,000 VND/kg, many parties believe that the price will not increase as strongly as before. Therefore, last weekend recorded a large trading volume in the market, many farmers also took advantage of this period to sell to close capital, causing the market to fall at the beginning of the week.

In the second quarter of 2024, the price of black pepper in the domestic market continued to increase, reaching a new record high. Accordingly, the domestic pepper price increased by about 93% compared to the beginning of the year and 2.3 times higher than the same period last year. The upward trend continued in July 2024 due to increased demand while supply was limited.

According to the Vietnam Pepper and Spice Association (VPSA), the increase in pepper prices in the domestic market is not as expected due to low demand from the Chinese market. Currently, pepper prices in the Chinese market are lower than those in Vietnam, which may be the main reason for the restriction on pepper imports from Vietnam.

Notably, despite being the country with the world's top pepper production and export, in the first 7 months of this year, Vietnamese businesses had to spend 80.4 million USD to import nearly 19,600 tons of pepper, an increase of 15% in volume compared to the same period in 2023.

Vietnam imports a lot of pepper from countries such as Cambodia, Indonesia and Brazil. Pepper from these 3 countries alone accounted for 92% of our country's total import turnover in the first 7 months of the year.

The reason is believed to be that pepper prices were low in the past, so many farmers switched to growing other crops. In addition, due to unfavorable weather conditions, pepper production has also decreased sharply.

Regarding this, VPSA admitted that due to the prolonged drought, our country's pepper output this year has decreased by 10%, down to about 170,000 tons compared to 2023. Therefore, Vietnamese enterprises must proactively import pepper from countries such as Brazil, Cambodia and Indonesia... to serve production and consolidate the top 1 position in the world in pepper production and export for over 20 years.

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 7,298 USD/ton, down 0.3%; the price of Brazilian black pepper ASTA 570 at 6,100 USD/ton; the price of Kuching black pepper (Malaysia) ASTA at 8,500 USD/ton.

Muntok white pepper price is 8,592 USD/ton, down 4.4%; Malaysian ASTA white pepper price is at 10,400 USD/ton.

Vietnam's black pepper price is trading at 5,800 USD/ton for 500 g/l; 550 g/l at 6,200 USD/ton; white pepper price at 8,500 USD/ton. IPC lowered pepper prices in Indonesia at the beginning of the week in the context of the harvest in this country starting to peak.