Black pepper: market scenario

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Hanoi – Vietnam’s pepper harvest in 2021 will reach 180,000 Mt, down 40,000 tons compared to the previous forecast and 60,000 tons lower than the 2020 harvest.

Vietnam pepper exports decreased by 15.6% in volume over the same period 2020, reaching 124,000 tons from January to May. The average export price reaching 3127 USD/tons, up 48.2% over the same period 2020.

Pepper planters are holding their produce as they are not interested in supplying their produce at the current price level. Also, lower market movement due to lockdown in Kerala growing regions added the bullish sentiments.

Domestic pepper farmers have called for the intervention of the spice board to ensure the purchasing and marketing for processors, dealers, and consumers are taking place by their requirements. They pointed out restrictions on spice buyers and traders, especially in the two districts of Idukki and Wayanad in Kerela growing states amid the shutdown due to the Covid-19 pandemic.

Mintec Global

The state’s industrial regulator allowed processing units to operate as spices belong to the food industry and are directly related to exports. However, processing units have difficulty meeting domestic demand from Masala’s manufacturing when raw materials are not available for processing.

As per trade information, in the last few years, huge quantities of pepper imported from Vietnam via Nepal and Myanmar to India illegally, but from the last two years, it’s banned, which was supported the Indian pepper prices, and it will support the price further in coming days.

Currently, rising demand comes from North-Eastern states, Bihar, West Bengal, Jharkhand, etc., which was not coming in this way for the last few years due to illegal trade and growing domestic demand from other states, likely to support pepper prices further.

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