The spot market sentiment across India was between steady and firm on Monday, December 20 for Black Pepper. Since December 7, the price of the spice has been mainly stable, with significant drops on December 14 and 16.
Market Sentiment
The experts believe that the price of Black Pepper fell in the last few decreases in the price of the crop was due to the Kerala High Court’s stay order, but it will be temporary. Last week Indian black pepper traders filed a case in the Kerala High Court on the import duty imposed by the government on the spice that is being brought in from Vietnam.
The government is adamant about not removing the import duty on the commodity.
It is important to note that Vietnam’s Black Pepper market price is also heavily influenced by its Black pepper market.
On December 20, Vietnam Pepper prices leveled off after suddenly falling at the end of last week. Across the major purchasing locations, the price range fluctuated between $3.47 and $3.58 per kg.
There has been a significant fall in the production of Chinese Black Pepper due to unfavorable weather. As a result, the import of the crop was increased during the first months of 2021 as per the report from the Import and export Department (Ministry of Industry and Trade). But from June 2021 on wards, the import was reduced by China due to the decrease in the demand for spicy food in the processing companies for the COVID-19 pandemic.
Indonesia’s one of the primary Black Pepper export markets is China, but the latter’s decrease in the import quantity did affect the Indonesian market. It was reported the export of Black Pepper from Indonesia to China was down by 40.6 percent during the first nine months of 2021, which reached about 7,231 tons.
In India, the lower production of the crop is expected to support the market price of the produce.
Price Trend
Black Pepper 500GL
| Date | Price |
| December 20 | $6,055 per kg FOB |
| December 16 | $6,040 per kg FOB |
| December 14 | $6,050 per kg FOB |
| December 13 | $6,100 per kg FOB |
The price is likely to move up or down by $0.20 to $0.27 per kg.
Hence, it is advised to do business mainly to buy the commodity now since the price is good. It is predicted the market for black pepper is likely to go bullish in the coming days.
Prediction
It has been predicted that the price will improve with the increase in the demand for Black Pepper globally. Furthermore, with the limited production of the crop from the major producing countries like Indonesia, Malaysia, and India and the increase in freight prices and difficulty in transportation, the price will increase for the spice.
Experts of the market also believe that many Black Pepper importing countries are likely to get their supply from India with a lower global supply of the product. As a result, the price will be supported with good domestic demand and despite higher production of 2020-2021 crop.
It has also been predicted that India will be producing about 8 to 10 percent less Black Pepper for 2021-2022. Last year the production was 62,000 MT.
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