Kochi: Black pepper prices lose sting on higher imports

Higher imports coupled with reports of a higher carry forward stocks in the market have dragged black pepper prices, registering ₹14 per kg drop in the last three weeks.

Prices at the Kochi terminal market were quoted at ₹646 for the ungarbled variety and it was ₹666 for garbled varieties. The quantities offered at the Kochi terminal market are 20-25 tonnes daily, mostly imported pepper, says Indian Pepper and Spices Trade Association.

Kishor Shamji, director of IPSTA, said pepper imports from Sri Lanka are on the higher side and in July alone, they made up 4,400 tonnes out of the total imports of 5,085 tonnes. The market is witnessing a selling spree as importers are trying to liquidate their overbought stocks. This has created a panic in the market, fearing a further fall in prices, he said.

Besides, most of the Indian consuming markets are flooded with imported pepper which is having quality problems of high moisture, low bulk density and presence of mould. This has forced dealers to liquidate their stocks at discounted rates, which has also resulted the prices to fall.

Festival demand yet to pick up

The festival demand is yet to pick up in the upcountry markets in the wake of unfavourable climatic conditions that led to heavy rains in most of the consuming states, which witnessed a subdued buying, he said.

The reports of carry forward stock of pepper from 2022 to 2024 are unrealistic and created unnecessary fear among the trade, prompting them to liquidate their stocks, he said.  

However, Shamji expressed the hope that the priceswill likely stabilise in the coming weeks with the starting of the festival season in North Indian marketswhich would perk up demand.