The price rally was supported by poor crop, good demand and world's economic recovery. The demand is very high in China. The pepper output in Chu Se district, decreased by 30-35 percent with only 12,000 tons harvested. Chu Se pepper has much higher quality than pepper from other regions, Chu Se pepper is now purchased at 60,000 dong per kilo.

According to the Vietnam Pepper Association (VPA), Vietnam's total output decreased by 10 percent this crop, while the output in Binh Phuoc province has decrease by an estimated 30-40 percent. According to Binh, with current prices, farmers can get profits of more than 50 percent.

The pepper price only increases at the end of the season, so many farmers without much capital had to sell at the beginning.

Source: InfoLine