HÀ NỘI — The purchase price of dried pepper dropped on Tuesday by VNĐ10,000 per kilo to VNĐ95,000-100,000 per kilo in Đắk Lắk, Gia Lai and Đắk Nông provinces against last week.

Farming product trading agencies in these Tây Nguyên (Central Highlands) provinces said this was the steepest reduction in the last five years. Many farmers said they would hold off on the sale of pepper and wait for better prices in the future, Tuổi trẻ newspaper reported.

A representative from an enterprise exporting farming products said the reduction was due to high supply while demand had not increased.

The total area used for pepper cultivation in the Central Highlands and other regions nationwide has exceeded their plan, therefore supply in the market has increased, the representative said.

Hồ Phước Bính, deputy chairman of the Chư Sê Pepper Association, said the current low price of pepper was not unusual. Furthermore, according to some forecasts, pepper prices over the coming years are expected to drop to VNĐ50,000 per kilo, similar to previous levels, due to the increasing supply of pepper.

According to statistics of the pepper industry, Việt Nam has the total area of 130,000-150,000ha, thrice the amount of area allotted under the development plan for pepper cultivation.

Therefore, Việt Nam’s total pepper output was expected to reach 300,000 tonnes in the next 3-4 years, which would be enough supply for the world, Bính said.

However, Bính said farmers should not destroy their pepper trees when prices decrease and grow them when the price surges. They should focus on investing in the development of clean pepper and improving quality, instead of worrying about pepper consumption or reductions in pepper prices. — VNS