Black pepper prices hit on better availability, subdued demand
Increased availability and subdued demand in the consuming markets had its impact on black pepper prices, which registered a ₹30 per kg drop in the last fortnight.
According to traders, the availability of pepper from Idukki as well as from southern districts was on the rise, coupled with the presence of imported Vietnam stuff at an MIP of ₹500 per kg.
With the completion of the Sabarimala pilgrimage season, the demand for pepper in Idukki, Pathanamthitta, and Kottayam have come down, leading to more availability in the terminal market in Kochi. This was also a contributing factor to the crash in prices.
The prices in Kochi for ungarbled pepper are ruling at ₹557 and the quantity offered in the auction platform was 26.5 tonnes.
Kishore Shamji, President of the Indian Pepper and Spices Traders Association, said consuming markets across North India are flooded with imported pepper from Sri Lanka, Vietnam, and Madagascar, which has impacted the domestic market prices of the commodity.
Pepper consumption in the domestic market has gone up, thanks to the opening up of more masala manufacturing units on account of the rise in ready-to-eat products. However, declining prices have forced sellers to hold back their produce, forcing buyers to pay at higher levels. The demand for green pepper in brine and dehydrated green pepper was limited this year due to the higher prices in the domestic market. Many processors prefer to import this commodity in refrigerated containers.
He said the drop in prices have forced farmers — who carry out inter-cropping in coffee plantations — to hold their crop, especially in Tamil Nadu and Karnataka, in view of the higher prices realised for coffee. Moreover, the harvest season for pepper is all set to start in Wayanad, Tamil Nadu, and Coorg shortly, and this would have further impact on prices.
Referring to import prices, Brazilian pepper was lower, below $4,000, while Madagascar is trading at $3,300 dollar with limited quantities. The Vietnam market is reported to have been closed for the Chinese “Tet” New Year, which this year is longer than usual, spanning more than 7 to 8 days.