INDIA/KERELA – Monsoon season is now expected in the country. If the latest forecast of the Meteorological Department is factual, then the monsoon may reach Kerala around May 20. Due to this, the business of pepper is expected to become sluggish in the coming days.
The Meteorological Department had recently released a significant estimate regarding the upcoming monsoon season. The department had said that the onset of monsoon season in Kerala might be around May 20 compared to the average period of June 1, 2022. If the truth remains, as per the department’s estimates, only about ten days are left for the monsoon season to begin in the country.
However, the pressure of the arrival of black pepper in the mandis of Karnataka has started decreasing. Even after this, there are reports that its price has come down recently and is hovering around $6,60/6,73 per kg in spot markets. The new crop of Merakra in Karnataka is also expected to be relatively weak. On the other hand, Kerala has remained negligible in the arrival of various commodities, including black pepper, for the past few weeks. The new crop of black pepper has been coming to the rural areas of Kerala for the last three to four months. However, its arrival has remained negligible in the big mandis like Kochi. Reports state recently it had gained $0,32-0,26 per kg, but due to sluggish work, black pepper traded lower by $0,06 to $6,92/6,99 per kg in the wholesale grocery market.
Over the past few years, direct deals in various significant commodities, including black pepper, have increased in Kerala. This is why the operational activities remain sluggish in multiple mandis. Contrary to the forecast, this time, the production of black pepper in Kerala is expected to fall. The main reason for this is not getting an attractive domestic price for this significant grocery commodity for several years; farmers have started prioritizing other crops. This time in Vietnam, pepper production is expected to be comparatively low. There is no forecast of a long rise in the spot pepper in the coming days.
Black pepper remained stable at $7,05 per kg as buying remained sluggish at reduced prices. This may affect the market sentiments. There is no hope of increasing black pepper in the spot in the coming week.
Price Trend
Black Pepper 500 GL
| Date | Price |
| May 10 | $7,85 per kg FOB |
| May 04 | $7,90 per kg FOB |
| May 02 | $7,95 per kg FOB |