A Strong Year for Indian Pepper Farmers

In 2024, Indian pepper farmers experienced a productive season, achieving a total output of 100,000 tonnes, compared to 80,000–85,000 tonnes in 2023. Farmers in Tamil Nadu, Karnataka, Andhra Pradesh, and Kerala expanded their cultivation areas, bolstered by favorable weather and effective crop management. This increase highlights the commitment and adaptability of India’s pepper-growing community.

Managing Stocks and Meeting Rising Demand

India began 2024 with a carryover stock of 51,000 tonnes, as per the Indian Pepper Community. Domestic consumption surged to 131,000 tonnes, driven by the growing needs of spice manufacturers, particularly those producing ready-to-use masala blends. Kishore Shamji, Director of the India Pepper and Spice Trade Association (IPSTA), emphasized that this demand has helped stabilize market conditions despite the increasing presence of imported pepper.

Farmers Face Challenges from Imported Pepper

While production numbers were encouraging, cheaper imports created difficulties for local growers. India imported around 40,000 tonnes of pepper in 2024, much of it entering upcountry markets at prices lower than domestic produce. This situation has made it harder for Indian farmers to secure profitable prices. Many are now urging policymakers to take steps to ensure fair competition and protect the interests of domestic producers.

Weather Concerns Threaten 2025 Output

Looking ahead to 2025, the industry faces potential setbacks. Erratic rainfall and unpredictable weather patterns are likely to affect yields, with experts predicting a reduction of 25–30% in production. If this happens, India’s dependence on imports could grow, adding to the pressures on local farmers. Similar weather-related concerns are affecting other major pepper-producing nations, including Vietnam, Sri Lanka, Indonesia, and Brazil, which are also anticipating reduced harvests.

On the global front, pepper production in 2024 was estimated at 533,000 tonnes, a slight decrease of 10,000 tonnes compared to 2023. Vietnam, the world’s largest producer, saw a decline in output but is expected to recover to 200,000 tonnes in 2025. Domestically, India’s pepper exports during the first half of 2024 rose to 10,150 tonnes, up from 8,094 tonnes in the same period last year. However, the sharp rise in imports—up by 84.2%—continues to weigh on the market.

Pepper Prices Remain Firm Despite Uncertainty

In 2024, domestic pepper prices stayed steady, with garbled pepper priced at $7,98 per kg and ungarbled pepper at $7,69 per kg. Nishant R. Gurjer, Chairman of the UPASI Spices Committee, described the market as cautiously optimistic, supported by steady demand. However, growers are closely monitoring weather patterns and the influence of imports on market conditions.

Supporting Farmers for Long-Term Success

Indian pepper farmers made notable strides in 2024 with higher yields and robust domestic demand. However, the influx of cheaper imports and unpredictable weather conditions present ongoing hurdles. To ensure sustainable growth, stakeholders must prioritize measures that protect local farmers and enhance their competitiveness in a challenging market environment.





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