International Pepper Community (IPC),an intergovernmental organisation of pepper producing countries, said pepper prices are looking stable now after months of decline.
Faced with excess supplies, global black pepper prices may see an upward trend only by 2020, according to a pepper expert. Hoang Thi Lien, executive director of International Pepper Community (IPC), an intergovernmental organisation of pepper producing countries, said pepper prices are looking stable now after months of decline.
“Right from the second half of 2016, pepper prices have seen a falling trend. It was worse in 2017. But now in the second half of 2018, they are less volatile,” said Lien who was here for the launch of farmers’ app for pepper cultivators developed by IPC in association with All India Spices Exporters Forum (AISEF). She said the global prices are averaging around $3000 per tonne now.
Lien warned that the farmers shouldn’t expect ‘sky-high’ prices in the coming years. “Those price levels were fuelled by speculation and not the real demand. It may not happen again.’’ Indian pepper prices too have fallen below Rs 400 per kg from around Rs 550 per kg a year ago, prompting the centre to impose a minimum import price (MIP) of Rs 500 per kg to protect the local growers. Lien said the MIP is not a correct step as prices are declining in all producing countries and India can’t be an exception.
To a question, she said the minimum import price introduced for Indian pepper is not a correct step as rates are declining in all the producing countries. Going forward, quality will be key in determining the prices, she said by pointing out examples of Kampot pepper from Cambodia and Muntok white pepper from Indonesia. The premium quality will fetch better prices.