Pepper prices hit record low in 5 years

According to the Ministry of Agriculture and Rural Development, Vietnam shipped around 24,000 tons of pepper in March with an export value of US$88 million, bringing the country’s total exports in the first quarter to 54,000 tons worth US$203 million. The average export price was US$3,667 per ton, down 42% against the same period last year.

The General Department of Vietnam Customs reported that key export markets were the US, India, Pakistan and the United Arab Emirates, which accounted for 38% of total pepper exports in the first two months.

The average export prices dropped in most markets, of which Egypt witnessed the sharp decline of 55.21% to US$2,727.86 per ton and Spain down 48.91% to US$4,008.52 per ton. Meanwhile, the highest price was seen in the Australian market with US$6,116.68 per tons although the export price decreased by 30.38% against the same period last year.

The same situation was observed in the domestic market. Pepper prices reported at the end of the first quarter fell by 15.7% against those in early this year.  Currently, pepper prices are around VND53,000-55,000 per kilo, the lowest in the last five years.

The decline of pepper prices is attributed to oversupply and overproduction. Despite a slight rebound in March, pepper prices go down again after growers sold it out simultaneously.