Black pepper prices expected to remain strong due to low production and expensive imports
03-Jun-2024 05:05 PM
Kochi. Although the harvesting and preparation of new stock of black pepper is going on in Kerala and Karnataka, but due to lack of good rains for a long time, the expected growth of the crop could not happen, due to which there is a possibility of a decrease in its production.
On the other hand, new stock is also coming in Vietnam, but due to weak production, the price has increased. As a result, its import in India is getting a bit expensive.
Its positive effect is being seen on the domestic market. However, black pepper imported from Sri Lanka has curbed the rise in the Indian market to some extent. The industry-trade sector believes that the price of black pepper may increase slightly in the coming time.
There is a possibility of a 15-20 percent decline in the domestic production of black pepper during the current year as compared to last year.
This year the production is estimated to shrink to 58-60 thousand tonnes, which is almost equal to the domestic demand and consumption.
Black pepper is also exported from the country. This means that if imports decrease or its price remains 'unsatisfactory', then the price of black pepper can rise well during the off-season of supply or consumption season. Even if it is for a few days.
There are reports of black pepper crop being badly affected due to unfavorable weather in Vietnam, the most prominent producer and exporter country, and there is a possibility of production decreasing by 25-30 percent.
The arrival of new black pepper started in Vietnam from February itself. Of course, the price of black pepper is rising in Vietnam, but still it is cheaper than the Indian product and hence it is being imported to India. The margin of importers has reduced. Sri Lankan pepper is also coming.
But the price of imported black pepper has started increasing gradually. The price of Sri Lankan goods was Rs 610-615 per kg three-four weeks ago, which is now being reported to be Rs 670/675 per kg.
The price of Indian pepper has improved to Rs 695-700 per kg in Kochi terminal market.