Strong demand, high production cheer up Indian pepper growers despite rising imports
Strong demand, high production and a steady rise in prices brought cheer to the Indian pepper sector in 2024 despite rising imports. However, erratic weather is impacting the output for next year.
The spice recorded higher production of 1,00,000 tonnes against 80,000-85,000 tonnes in the previous year and the robust demand ensured that the price realisation was better despite a bigger output, according to the farming community. They attributed the reasons for increased production to new areas of planting in Tamil Nadu, Karnataka, and Andhra Pradesh as well as in existing areas of Kerala that offered a good yield.
Additionally, the industry has a carryover stock of 51,000 tonnes from the previous year, according to reports from the Indian Pepper Community, as cited by Kishore Shamji, Director of the India Pepper and Spice Trade Association (IPSTA).
Impact of imports
He said the domestic consumption of pepper has shown a considerable increase this year, touching 1,31,000 tonnes, thanks to rising demand from readymade masala manufacturers.
He pointed out that rising imports of around 40,000 tonnes from other producing countries posed a problem as much of this imported stuff entered upcountry markets and were sold at rates below the domestic prices hitting the farmers.
However, he felt that the prospects for pepper in 2025 looked bleak as erratic climate with irregular rainfall could affect production resulting in 25-30 per cent drop in output. This might necessitate higher imports of pepper into the country to meet the industry requirements. Almost all countries such as Vietnam, India, Sri Lanka, Indonesia, and Brazil have already voiced concern over the 2025 crop year.
R Sanjith, Secretary General, UPASI, said, per IPC, the global production of pepper during 2024 was estimated at 533,000 tonnes, a decline of 10,000 tonnes compared to last year. A decline in global production was largely led by Vietnam, where the crop is expected to be lower by 20,000 tonnes at 170,000 tonnes. For 2025, Vietnam pepper production is estimated to be higher at 200,000 tonnes.
Exports up a tad
According to Spices Board estimates, Indian pepper production during 2024 was at 124,000 tonnes, which was higher by 8,000 tonnes compared to last year, while 2025 crop is estimated at 77,500 tonnes.
Export from India during April-September 2024 was pegged at 10,150.41 tonnes, which is higher by 2,056.49 tonnes compared to the same period of last year. “The increased import of pepper is matter of concern, as the quantum imported during April-September 2024 was higher by 84.2 per cent and was estimated at 8,631 tonnes against 4,686 tonnes during the corresponding period of the last year. Pepper prices are presently hovering around ₹665 per kg for garbled and ₹645 for ungarbled and outlook for pepper is positive in the short to medium term,” Nishant R Gurjer, Chairman, UPASI Spices Committee.