Good rise in black pepper due to reduced supply and strong demand
07-Jun-2024 01:52 PM
Kochi. Due to complex supply and availability situation and strong demand, the price of black pepper has started rising and the bullish environment is expected to remain in the market in the coming times as well. Within the last three months, its price has increased by about 20 percent.
In the terminal market of Kochi, the price of ungarbled variety of black pepper increased to Rs 620 per kg and the price of garbled category jumped to Rs 640 per kg.
It is known that in March 2024, the general average price of black pepper was Rs 505 per kg for ungarbled variety and Rs 525 per kg for garbled variety.
According to trade analysts, on the one hand there is complexity in the supply of black pepper, while on the other hand there is strong demand for its industrial consumption and especially spice manufacturers.
As a result, its price has increased in recent weeks. Last week, the price of black pepper had increased by a whopping Rs 17 per kg, while during the current week also it has increased by Rs 10 per kg.
There is a limited supply of black pepper produced in Kerala, Karnataka and Tamil Nadu, while spice manufacturers of these states are trying to buy it in large quantities.
Black pepper imported from countries like Sri Lanka and Vietnam is also seeing good demand from spice manufacturers. Due to the decrease in production in Vietnam, the price of black pepper has started to rise.
The director of the Indian Pepper and Spices Trade Association (IPSTA) says that there is very little supply of black pepper from Idukki, the main producing area of Kerala, because most of the producers have sold most of their stock during February-March itself.
At that time, on the one hand, there was an estimation of a huge increase in the production of black pepper and on the other hand, a decrease in its prices, seeing which the producers did not consider it appropriate to hold on to their stock.
This time, there was also a possibility of better production of black pepper in Tamil Nadu, while it was being imported in good quantities from Sri Lanka and Vietnam.
At present, more trade is being done of black pepper imported from abroad than domestic goods. Due to increased imports, the exporting countries have increased the prices.
The price of Sri Lankan pepper has jumped from $5800 per ton in January to $6800 per ton and the price of Vietnamese pepper has jumped from $4000 to $6700 per ton. On the other hand, the price of Indian pepper has also increased to a high of $8000 per ton.