AsemconnectVietnam - On Monday, domestic pepper prices in Vietnam's Central Highlands remained unchanged at 156,000 - 161,000 VND per kg compared to Yesterday, according to Kinhtedothi.

According to VPSA (Vietnam Pepper and Spice Association), Vietnam’s pepper output in 2024 is predicted to decrease by 10 percent compared with 2023 to VND170,000 tons, a 5-year low.
Last week, domestic pepper prices increased by 1,000 - 3,000 VND/kg, highest in the Central Highlands provinces. Since the beginning of June 2024, pepper prices have changed continuously in a very short time and without any rules, causing "headaches" for market participants. Right after the price increased sharply and reached 180,000 VND/kg, the selling force at the peak caused the market to decline sharply in a very short time.
Currently, the market has recovered and fluctuates within the range of 160,000 VND/kg. This is an unimaginably high price when entering the new crop, and is also a reasonable threshold that market participants can accept at the present time.
One of the main reasons driving the increase is that businesses lack goods for export, so they increase their purchases in a short period of time, causing prices to increase dramatically. Experts say that the possibility of an impact from speculative activities during this period cannot be ruled out.
Similarly, the amount of pepper smuggled into the market by businesses and speculators during peak price times is one of the reasons for the shock price decline.
After the events, the current price is struggling around the 160,000 VND/kg mark. Along with domestic pepper prices, export pepper prices also increased sharply. At this rate, Vietnam's exports will reach $1 billion in pepper this year.
Commenting on the market in the coming time, experts say that supply will still be scarce. Vietnam - the country that supplies up to 50% of global pepper production - has finished its crop since March, while Brazil has not yet started its crop, and Indonesia and Malaysia start their crop around July.
The first months of the third quarter are the period when Vietnamese pepper prices still have growth momentum. When pepper from other countries enters the market, Vietnamese pepper prices will fall again. Experts predict that this week pepper prices still have a lot of room to increase, but the price step is narrow due to information that traders are actively buying again.
Vietnam imported 1,357 tonnes, valued at 6.6 million USD. Olam is the main importer with 208 tonnes, while Indonesia, Cambodia, and Brazil are the three main pepper suppliers to Vietnam with 596 tonnes, 486 tonnes, and 135 tonnes respectively.
So far this year, Vietnam has shipped abroad 114,424 tonnes of pepper worth 493.1 million USD, down 13.2 in volume but up 20.6% in value over the same period last year.
Following are domestic pepper prices on June 24, 2024, in the main pepper growing and consumption regions:

T.Huong
Source: Vitic