Black pepper prices have experienced a dip in the last fortnight due to increased availability. It is also affected by the lackluster demand in consumer markets. Traders note a surge in pepper availability from Idukki and southern districts, compounded by imported Vietnam pepper at a MIP of $6,03 or €5,59 per kg.
Sabarimala’s Impact on Demand
Completing the Sabarimala pilgrimage season leads to a drop in demand for pepper in Idukki, Pathanamthitta, and Kottayam. This dip in demand contributes to higher availability in Kochi’s terminal market, becoming a catalyst for the recent price crash.
Global Pepper’s Impact on Domestic Prices
The Indian Pepper and Spices Traders Association reports an influx of imported pepper. These imported pepper flood the consuming markets in North India. Pepper from Sri Lanka, Vietnam, and Madagascar dominates, causing a ripple effect on domestic prices. The surge in masala manufacturing units, fueled by the rise in ready-to-eat products, adds complexity to the market.
Farmers’ Dilemma and Harvest Season Looming
The prices are dropping, prompting farmers, especially those engaged in inter-cropping in coffee plantations in Tamil Nadu and Karnataka, to withhold their pepper crop. The allure of higher prices in the coffee market is too tempting. Additionally, the impending harvest season in Wayanad, Tamil Nadu, and Coorg casts a looming shadow over pepper prices. Thus, creating an intricate balance between supply and demand.
Global Pepper Market Overview
In the global arena, Brazilian pepper registers a lower price. The Vietnam market pauses the Chinese New Year, extending longer than usual, spanning more than 7 to 8 days.
Conclusion
In conclusion, the black pepper market navigates a complex space influenced by regional demand, global imports, and seasonal shifts. The recent dip in prices, driven by increased availability and subdued consumer demand, stresses the market’s delicate balance.
Sabarimala’s pilgrimage season’s end, coupled with global pepper imports flooding North Indian markets, contributes to domestic price fluctuations. Farmers face dilemmas in the middle of the dropping prices, while the looming harvest season adds tension. As global markets pause for the Chinese New Year, the pepper industry awaits the next chapter, balancing supply, demand, and global economics in its ongoing trend.