Current Prices Declined in Past Two Weeks

Pepper farmers are highly concerned as prices have seen a steep decline over the last several weeks. The current prices in the Kochi terminal market are hovering between $7,51 and $7,75 per kg. A noticeable drop from previous levels. Over the past two weeks alone, the market has recorded a $0,23 per kg drop, with $0,13 per kg of that decrease happening just in the last week. Over the past five weeks, the total decline has accumulated to $0,41 per kg.

Impact of Sri Lankan Imports on Domestic Supply

The farming community attributes the price fall primarily to the influx of cheaper Sri Lankan pepper. Sri Lankan pepper is now widely available in many consumer markets throughout India, particularly in Mumbai and other southern regions. The oversupply has created competitive pressure on local pepper, and farmers across key production states in southern India have been compelled to sell their stocks at lower prices.

In addition, data reveals that India imported 10,433 tonnes of pepper from Sri Lanka between July and September, alongside 12,606 tonnes from other producing nations. With Sri Lanka's production increasing by over 25,000 tonnes, there’s been a strong push to move surplus stock into the Indian market to meet the high domestic demand. Unfortunately, these imported peppers often have quality issues, such as low density, high moisture content, and mold.

Calls for Import Regulation and Quality Control

The Kerala chapter of the Indian Pepper and Spices Trade Association has raised concerns. They appealed to the government to impose controls on these imports to protect the domestic pepper industry. The organization has pointed out that unregulated imports are directly harming the livelihoods of domestic farmers. As they face challenges from both price pressures and quality concerns with imported pepper.

Conclusion

With rising import volumes and quality issues, domestic pepper prices are likely to remain under pressure. Local farmers and industry groups are seeking intervention to curb the impact of these imports on India’s pepper market. The coming months will be crucial for the pepper farming community, as they wait to see if government actions will help stabilize prices and protect domestic producers.





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