After a period of sinking to the bottom, pepper - a commodity often referred to as Vietnam's "black gold" - unexpectedly experienced a price surge. Within just one month, the price of this commodity increased more than fourfold. According to the agricultural, forestry, and fishery market bulletin of the Ministry of Industry and Trade, it is estimated that Vietnam's pepper export turnover in March 2021 reached 30,000 tons, valued at 86 million USD, an increase of 123.4% in volume and 120.9% in value compared to February 2021. Overall, in the first quarter of 2021, pepper exports are estimated to reach 60 thousand tons, earning 174 million USD, a decrease of 25% in volume and 1.4% in value compared to the same period in 2020. The average export price of pepper reached 2,879 USD/ton, up 31.5% compared to the same period in 2020. Statistics show that in the first two months of 2021, exports of black pepper and white pepper decreased compared to the same period in 2020. However, exports of ground black pepper and ground white pepper increased significantly. Thus, the structure of exported pepper varieties has changed dramatically. Enterprises reduced the export of raw pepper, instead focusing on more deeply processed varieties. With the improvement in exports, the price of raw pepper in the domestic market last March also experienced significant fluctuations. In Ba Ria - Vung Tau, within just one month, the price of pepper increased more than fourfold, from 17,500 VND to 73,000 VND/kg. Similarly, pepper prices in the provinces of Dak Lak, Dak Nong, Gia Lai, Dong Nai, and Binh Phuoc were respectively at 72,000 VND/kg, 71,000 VND/kg, 70,000 VND/kg, 74,000 VND/kg, and 73,000 VND/kg. The reason for the pepper price surge, according to the Department of Agricultural Product Processing and Market Development (Ministry of Agriculture and Rural Development), is due to a decrease in supply while demand is improving. In the first half of April, black pepper prices continued to remain stable at 70,000-74,000 VND/kg. Compared to the same period in 2020, current black pepper prices are double (only reaching 35,000-37,000 VND/kg). Meanwhile, white pepper prices are at 108,000 VND/kg, much higher than 57,000 VND/kg in the same period in 2020. Some pepper growers in Dak Lak said that although pepper prices are currently good, this year's production has significantly decreased, with some places seeing a reduction of 30-40%. Additionally, diseases on pepper plants have not been thoroughly addressed, affecting the yield and production of pepper gardens. Faced with the raw pepper price surge, farmers in the pepper-growing capitals hope prices will exceed 80,000 VND/kg and may rise to 100,000 VND/kg by the end of this year due to a sharp decline in supply. Therefore, many people are inclined to hoard goods, waiting for higher prices to sell. Industry enterprises also admit that March is the peak harvest time for pepper, and it is expected to end by the end of April, so the market's pepper commodity supply is not abundant, and prices are rising sharply, leading to the phenomenon of: pepper growers having the mentality of "hoarding goods without rushing to sell," while traders are buying up "hoarding goods" waiting for prices to rise further, leading to a shortage of pepper. According to the IPC, the "shocking" pepper price increase has made the pepper market in Vietnam unpredictable, forcing importers to be cautious when sourcing goods. Mr. Nguyen Nam Hai - Chairman of the Vietnam Pepper Association (VFA) - predicts that with the current situation, pepper prices will not increase sharply but will also not fall as before. Vietnam is harvesting pepper, but the price increase shows that market demand exists. According to a VFA survey, in 2021, Vietnam's pepper production will decrease by about 25% compared to the previous pepper crop. Source: vietnamnet.vn