Last year was challenging for plantation produce and spices

06-Jan-2025 11:01 AM

The year 2024 was challenging for the plantation produce and spice sectors, as outlined by the President of the United Planters Association of South India (UPASI).

It was marked by a combination of adverse weather conditions, which negatively impacted production, and rising prices, which provided a mixed outlook.

While some positive signs are being observed for 2025, the economic situation in many countries, exacerbated by global tensions such as the ongoing Russia-Ukraine war and instability in West Asia, created logistical challenges.

The war, along with threats to sea routes like the Suez Canal and the Panama Canal, led to higher transportation costs, further impacting production expenses.

The price of plantation products and spices is largely driven by supply factors. Climate change and adverse weather conditions continue to threaten production, leading to concerns about future declines in output.

While rising prices are beneficial in some ways, the higher production costs and damage from pests and diseases make it less advantageous for producers. The price increases often only offset the additional costs, failing to provide substantial profits.

The small cardamom and black pepper markets are also facing difficulties. The global supply of both spices is limited, with significant drops in production in key producing countries like Guatemala and India.

The low stocks of small cardamom are contributing to price increases, though the overall price growth for black pepper may be constrained by imports from other regions.

The strong global demand for these spices could continue, but the supply issues may not lead to significant price hikes.