The pepper prices have surged to levels ranging from VNĐ119,000-VNĐ120,000 per kilo. — Photo vnbusiness.vn
The Việt Nam Pepper and Spice Association has expected pepper prices to continue rising every week.
The association predicts that prices could hit new peaks of VNĐ350,000 - 400,000 per kilo - and even from this high base, increases will continue for the next decade.
Although prices could fluctuate day by day, they are still on upward trend in the long term.
Pepper prices on May 27 surged to levels ranging from VNĐ119,000-VNĐ120,000 per kilo in Đắk Lắk, Đắc Nông, Gia Lai, Đồng Nai, Bà Rịa-Vũng Tàu and Bình Phước provinces.
Experts say that this week the domestic and international pepper prices will not increase as fast as they did last week, but the market is not ready to cool down and it is likely to anchor at over VNĐ120,000 per kilo.
Shortage of empty containers has pushed marine freight costs up by an average of about 30 per cent in recent weeks. This too has pushed up the price of agricultural products, including pepper.
Last week, the pepper prices increased by VNĐ9,000 per kilo, over a total of five consecutive days.
This represents a price increase of VNĐ80,000 per kilo, or 238 per cent, from a low of VNĐ34,000 per kilo in 2020.
Prices are also being pushed by demand outstripping supply and worryingly, while experts believe that the demand for spices will continue to increase, many Vietnamese pepper growing areas are barren, so there is not much room for expansion.
The volume of raw pepper sold on the market is also still low, because the pepper growers expect prices to continue to increase.
Last week, trading sessions of the International Pepper Community (IPC) showed big fluctuations.
Vietnamese black pepper was traded at US$4,800-$5,000 per tonne, depending on each type, while white pepper price was at $7,200 per tonne.
That price was at $5,000 per tonne for Lampung (Indonesia) black pepper and Brazilian black pepper and $4,900 per tonne of Kuching (Malaysia) ASTA black pepper.
Trade in white pepper showed a price increase to $7,179 per tonne of Muntok (Indonesia) white pepper and $7,300 per tonne of Malaysian ASTA white pepper. — VNS