The monsoon season has arrived in full swing, but fortune hasn’t favoured the pepper market. With rainfall in the southern states, including Kerala, falling short by approximately one-third, the pepper market faces an uphill battle.
Despite the delayed arrival of the monsoon in Kerala, it gradually made its way to other southern states. However, the rain gods have been stingy, with monsoon rainfall currently hovering at 35-40 percent below normal levels. This scarcity of rainfall has left its mark on pepper production and market conditions, casting a shadow over the industry.
Kerala’s ongoing new crop season has led to limited arrivals, especially in prominent marketplaces like Kochi. Moreover, farmers are cutting out the intermediaries and selling directly to buyers, resulting in fewer deals in these bustling hubs. Consequently, reports indicate a sense of sluggishness permeating the Kochi pepper market.
Adverse weather conditions
The adverse weather conditions in critical pepper-producing states such as Karnataka and Kerala have further compounded the issue. Rumors are circulating about a potential 20 percent decline in black pepper production in Kerala. Imports from Vietnam and Sri Lanka have been pouring in to compensate for the shortfall. Notably, black pepper imported from Sri Lanka carries a relatively higher price tag. However, the monsoon season has temporarily halted these imports, presenting a compelling opportunity for local businesses.
The government’s strict stance on imported pepper has caused disruptions in domestic markets, triggering a slight price increase. However, market sentiments remain subdued due to meager sales from farmers. Direct transactions between farmers and buyers in rural areas of Kerala have significantly reduced trading activities in significant marketplaces. The wholesale price of black pepper in Kochi stands at $6,46/6,52 per kg, having recently softened after an earlier uptick of $0,18. Despite these fluctuations, market experts predict an ongoing slowdown in the pepper industry, thanks to the looming specter of supply disruptions during the monsoon season.