In the heart of Kerala’s bustling markets, particularly Kochi, a remarkable air of stability has lingered in black pepper despite the paltry arrivals from pepper farmers. Yet, this tranquil trend is poised for a shake-up, igniting hopes of a modest uptick in black pepper prices in the days ahead.
Most parts of Kerala bask in the glow of clear skies despite having experienced a spate of rainfall. Nevertheless, Kerala reports a 45 percent deficit in rainfall compared to the seasonal norm, casting a shadow on the pepper landscape. The recently concluded festivities of Onam, followed by the G20 summit, induced a lull in Kochi’s pepper market. But indications now point to an impending awakening from this slumber. After all, the new crop of black pepper has been gradually trickling in from Kerala for nearly eight to nine months.
Unfavorable weather conditions in recent times have constricted the pepper supply from prominent producing states like Karnataka and Kerala, exacerbating the tight market conditions. It’s believed that the state now grapples with the arduous task of stimulating regular arrivals of fresh crops, even in significant shops. Whispers are circulating, suggesting a potential 20 percent drop in Kerala’s black pepper production this season due to the vagaries of the monsoon. Although import statistics remain obscured by the seasonal deluge, black pepper, and the new crop have historically trickled in from Vietnam and Sri Lanka. Intriguingly, there’s a hint that the black pepper imported from Sri Lanka commands a relatively higher price.
As the monsoon season unfolds, a minor inflow of imported black pepper commences tantalizing traders’ senses. Earlier, the government’s stringent actions against imported black pepper stirred concerns of supply disruptions in domestic markets, resulting in slight price hikes. Last year, Kerala experienced an abundance of rainfall during the monsoon season. However, the market sentiment now bears the brunt of farmers’ subdued sales. Reports emerge of direct transactions from Kerala’s rural landscapes straight into consumer markets.
With the monsoon’s advent, the supply chain of various groceries faces imminent disruption, boding well for the black pepper market’s revival in the days to come.