Pepper prices likely to drop globally on high Vietnam output

Vietnam harvesting is at its peak and has seen prices dropping to 50,000 Vietnamese Dong (VND) per kilogramme from 2,05,000 in 2014.

Drop in black pepper prices in Vietnam is likely to have an impact on global black pepper rates; and also on the back of development in India, which has seen high production in almost all of the pepper growing regions.

Black pepper futures, asta grade, was traded on Tuesday at $2,700 for April shipment. Brazil is also offering similar prices for last quarter of the year 2018.

The Vietnam price drop would have an impact on domestic prices which is ruling at Rs 390 per kilogramme in Kochi. Even as the harvest is in progress, Indian growers are anticipating a lower crop by the end of March which is around 55,000 tonnes.

However, pepper growers expect that the government intervention to curb malpractices connected with pepper imports will help farmers realise better prices for the spice.