Pepper Prices May Stay High Amid Limited Imports and Lower Production

30-Apr-2025 07:52 PM

Kochi. With the harvesting season of new pepper crops nearing completion in Kerala and progressing in Karnataka, market activity is picking up, but supply pressure remains subdued, suggesting either lower production or stock-holding by producers.

Market participants report that weather adversities and natural disasters during the last season adversely affected pepper cultivation in both Kerala and Karnataka, leading to an estimated 20–30% decline in production. As arrivals increase gradually in producing markets, the overall supply still appears tight, keeping prices relatively firm.

At the Kochi terminal market, pepper is currently quoted at above ₹700 per kg, and limited volumes are being traded. This is largely due to producers opting to sell directly to Disawari traders and exporters at premium rates, reducing the volume available in the wholesale market.

India is the largest consumer of pepper globally, with Karnataka accounting for around 55% of domestic production and Kerala contributing 40%.

The remaining 5% comes from states like Tamil Nadu. If imports from major producers like Vietnam and Sri Lanka remain restricted, analysts expect further upward movement in domestic prices.

Producers and traders are optimistic about future price trends, citing low availability and high domestic demand as key bullish factors.