The association predicts that prices could hit new peaks of 350,000 - 400,000 VND per kilo - and even from this high base, increases will continue for the next decade.
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The pepper prices have surged to levels ranging from 119,000-120,000 VND per kilo. (Photo: vnbusiness.vn) |
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 119,000-120,000 VND per kilo in Dak Lak, Dak Nong, Gia Lai, Dong Nai, Ba Ria-Vung Tau and Binh Phuoc provinces.
Experts said 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 120,000 VND per kilo.
Shortage of empty containers has pushed marine freight costs up by an average of about 30% in recent weeks. This too has pushed up the price of agricultural products, including pepper.
Last week, the pepper prices increased by 9,000 per kilo, over a total of five consecutive days.
This represents a price increase of 80,000 VND per kilo, or 238%, from a low of 34,000 VND 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 4,800-5,000 USD per ton, depending on each type, while white pepper price was at 7,200 USD per ton.
That price was at 5,000 USD per ton for Lampung (Indonesia) black pepper and Brazilian black pepper and 4,900 USD per ton of Kuching (Malaysia) ASTA black pepper.
Trade in white pepper showed a price increase to 7,179 USD per ton of Muntok (Indonesia) white pepper and 7,300 USD per ton of Malaysian ASTA white pepper.
Source: VNA