Pepper Prices Decline Amid Subdued Demand and Imports

Heavy rain in North Indian cities and cheaper imports from Sri Lanka have impacted black pepper prices at the Kochi terminal market. Officials from the Indian Pepper and Spice Traders Association (IPSTA) reported that prices of;

• Ungarbled varieties have dropped to $7,80 per kg, though they are slowly rising to $7,87-$7,94 per kg.
• Idukki grades are quoted at $7,98-$8,05 per kg.
• The traded quantity for the week was 20.5 tonnes, with a total pepper arrival of 181 tonnes, an increase of 37 tonnes from the previous week.

 Imports and Weather Impact Pepper Demand

According to Kishor Shamji, Director of IPSTA, Sri Lankan pepper is available in the domestic market at lower rates due to declining prices of $6,30-$6,50 per kg. This has led many end users to procure Sri Lankan pepper despite its lower bulk density and high moisture content. There are also reports that importers are buying domestic pepper to mix with imported pepper to improve bulk density.

Heavy rain in North Indian cities has affected consumer demand for pepper across the markets, impacting procurement by consuming industries. The rain has significantly affected demand in Kerala markets and is likely to impact pepper production in the next season.

Wayanad Landslides and Shifts in Agriculture

Kishor Shamji noted that the crop loss due to landslides in Wayanad, especially for pepper, has yet to be assessed. However, the share of pepper from these regions has decreased as farmers have shifted to other crops and tourism-related activities by converting their land. Overall, the pepper supply from Wayanad has declined, which could lead to losses, as Wayanad is one of Kerala's key pepper production regions.

Heavy rain and cheaper imports from Sri Lanka have subdued pepper demand in India's upcountry markets, leading to a decline in prices. The situation is compounded by challenges in regional production, particularly in Wayanad, where agricultural shifts and weather impacts are affecting pepper supply. As the market adjusts to these conditions, future pepper production and prices will be closely monitored.