The low prices of Henan peppers and Indian peppers have influenced the domestic market. The market was in a poor condition, but the price has yet to fall significantly. Temperatures continued to rise in the middle of March. This put a limit to the growth of storage outside of domestic pepper warehouses. Large volumes of peppers from short-term storage and farm storage were forced onto the market. This increased supply disturbed the market trade.
The pepper market showed distinctive regional characteristics. The amount of pepper supply from short-term storage and farm storage was the most important reason for regional price differences. The supply volume from production areas in Henan was relatively large and the price was therefore relatively low. The number of fixed trade purchases gave some support to the price of peppers in Henan. The supply from other production areas is smaller in volume and the price remains stable for now. A new wave of Indian peppers recently crossed the border. The supply volume of Indian peppers is abundant and the price is likely to drop, which puts extra pressure on the domestic pepper market.
Source: Shandong Wucheng Price Bureau