Kerala’s Black Pepper Market Struggles with Low Demand and Import Pressure
Local Demand Declines, Imports Rise
Kerala's black pepper market is under pressure as local demand drops and cheaper imports from Sri Lanka flood in. Kishore Shamji, the director of the Indian Pepper and Spice Traders Association (IPSTA), mentioned that ungarbled pepper prices have fallen to USD 7,80 per kg. At the same time, Sri Lankan black pepper is selling at much lower rates of USD 6,30 to USD 6,50 per tonne. This price difference is attracting cost-conscious buyers, especially as the gap widens.Imported Products Are Being Blending Up With the Domestic
The rise in imports has led some importers to blend domestic pepper with Sri Lankan stock to improve bulk density. They do this to make the products more appealing. Consequently, this practice is changing market dynamics and putting more pressure on local prices. As a result, domestic producers are struggling with the growing gap between local and imported pepper.Bad Weather Adds to the Struggle
To complicate matters, severe weather conditions have also impacted Kerala’s black pepper market. Recent landslides in Wayanad, along with heavy rains in North India, have reduced consumer demand. These weather challenges are likely to affect the upcoming pepper production season. Although the full extent of crop damage isn’t entirely clear, there has already been a decline in supply from Wayanad. Many farmers, in response, are diversifying into other crops or even turning to tourism-related activities.Kerala’s Dominance in Pepper Production
Kerala remains a dominant player in India’s black pepper industry, producing almost 90 percent of the country’s pepper. Idukki and Wayanad continue to be top-producing districts. However, agricultural advancements have allowed pepper cultivation in other regions of India. This has diversified the nation’s pepper production footprint.Conclusion: Adaptation is Key
The challenges in Kerala’s black pepper market underline the need for adaptation. It would be better if the farmers or growers think about the quality of crop. With these changes, Kerala’s pepper market may find the balance it needs to thrive in the future.Click here to reach our trading platfrom CMBroker