Vietnamese pepper farmers rejoice over rising prices

Wednesday, 2021-08-18 11:08:37
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Farmers are harvesting pepper seeds in Phu Quoc. (Photo: VNA)
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NDO - The COVID-19 pandemic has affected agricultural exports, including pepper, but the domestic pepper market has remained buoyant and farmers are enjoying higher prices than in the early months of the year.

According to the General Department of Customs, Vietnam’s pepper exports in the first half of 2021 were estimated at 154,000 tonnes, worth US$500 million, down 7.5% in volume but up 39.8% in value compared to the same period in 2020.

The export prices averaged at US$3,225 per tonne, a year-on-year surge of 51.1%, with prices rising strongly in many markets such as Egypt, Ukraine, Russia and Kuwait.

Despite the complex developments of COVID-19, the trading of pepper in the domestic market has remained relatively busy.

Black pepper prices have risen by 1.4-5.6% compared to late July, climbing to VND76,000-79,000 per kilogram. White pepper is now standing at VND113,000 per kilogram, up VND66,000 per kilogram over the same period last year.

According to experts, domestic demand will rise in August as exporters are stepping up purchases to offset stockpile shortages.

The current scarcity is expected to drive black pepper prices to VND80,000 per kilogram this month. The rising prices in the past several months are helping farmers reap larger profits while exports are also expected to be bolstered after a subdued period.

Vietnam’s pepper exports are going quite smoothly but are bound to be affected by COVID-19. Rising shipping costs and the shortage of empty containers are causing a certain volume of exports to remain unshipped at southern ports.

With the current upward trend in prices, Vietnam’s pepper industry is on track to return to the club of goods with export revenue of US$1 billion and above.