Traders now pay VND65,000-66,000 a kilogram of pepper, accounting for half of the price in the same period last year.
Long lasting rains last year created conditions for pests and diseases to attack pepper crop, resulting in output drop this year.
According to statistics, high pepper prices in previous years sent farmers to expand farming area to 40,100 hectares in Ba Ria-Vung Tau, Dong Nai and Binh Phuoc provinces in 2017. The area far exceeds the plan of 12,800 hectares by 2020 of the Government.
That has broken supply and demand balance causing continuos price reductions for the last two years.
