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| Pepper prices have soared to a range of VND119,000-120,000 per kilogram. — Photo: vnbusiness.vn |
HANOI — The Vietnam Pepper and Spices Association expects pepper prices to continue rising every week.
The association predicts that prices could reach a new high of VND350,000-400,000 per kilogram, and will continue to rise from this high level over the next decade.
Prices may fluctuate from day to day, but in the long term they are still trending upwards.
On May 27, pepper prices soared to between VND119,000 and VND120,000 per kilogram in the provinces of Dak Lak, Dak Nong, Gia Lai, Dong Nai, Ba Ria-Vung Tau and Vinh Phuc.
Experts said that although domestic and international pepper prices this week will not rise as sharply as last week, the market is unlikely to settle and is likely to remain above VND120,000 per kilogram.
A shortage of empty containers has caused sea freight costs to rise by an average of about 30 percent in recent weeks, also pushing up prices of agricultural products, including pepper.
Last week, chilli prices rose by VND9,000 per kilo for five consecutive days.
This represents an increase of VND80,000 per kilogram, or 238%, from a low of VND34,000 per kilogram in 2020.
Prices are also soaring as demand outstrips supply, and the concern is that while experts believe demand for the spice will continue to grow, much of Vietnam’s pepper-growing areas are barren, leaving little room for expansion.
The amount of fresh pepper for sale on the market is still low, as pepper producers expect prices to continue to rise.
Last week, the International Pepper Council (IPC) trading session saw significant fluctuations.
Vietnamese black pepper was traded at US$4,800-5,000 per tonne depending on the variety, while white pepper was sold at US$7,200 per tonne.
The prices were $5,000 per tonne for Lampung (Indonesia) and Brazilian black pepper, and $4,900 per tonne for ASTA black pepper from Kuching (Malaysia).
White pepper prices rose to $7,179 per tonne for Muntok (Indonesia) white pepper and $7,300 per tonne for ASTA white pepper from Malaysia. — VNS
