Black Pepper Prices Ascend Amid Supply Challenges

Prices Increased

Black pepper prices in North India have surged due to reduced market arrivals and unfavorable weather conditions impacting the crop yield. The price increase, approximately $0,84 to $0,90 per kg, is attributed to lower production and distribution rates. Currently, the market anticipates further price hikes of around $0,72 to $0,84 per kg due to these factors.

Regional Challenges

Kerala, a major black pepper producing region, has experienced climatic adversities with delayed monsoons and inadequate rainfall, leading to a significant reduction in crop size by an estimated 27-28%. These conditions have prompted traders to withhold their stock from the market, expecting better prices. Furthermore, restrictions on imports, particularly from Vietnam, and reduced inflow of cheaper alternatives from regions like Assam, have exacerbated the supply constraints.

Price Trends

The market has begun to show signs of recovery with a noticeable price increase of $0,12 to $0,18 per kg in the last few days, bringing the cost to approximately $7,21 to $7,33 per kg based on quality. The shortage of supply from traditional sources, combined with high international market rates, has curtailed new import deals. Consequently, prices in Kerala, currently at $7,21 per kg, are expected to reach approximately $8.05 per kg.

Future Outlook

Looking ahead, the situation remains tight with declining stocks and reduced imports from Vietnam due to bullish local markets. This has led to a decrease in loading by 20%. Local demand continues to rise at current price levels, accentuated by the upcoming seasonal consumption period extending until mid-March. The diminishing quality and quantity from the last season’s crop have led to an overall drop in production, keeping the existing stock levels significantly low and pushing prices upward.

The black pepper market is poised for a price increase due to decreased supply, adverse weather conditions, and reduced imports, amidst steady domestic and seasonal demand.

Related posts:

Black Pepper Market Shows No Sign of Slowing Down Black Pepper: Chances of Roaming in a Limited Range Fiery Resilience: Black Pepper Market Heatwave in South India Black Pepper: Expected to Remain Sluggish Will Indian Black Pepper Prices Stay Strong? Indian Pepper: High Selling Pressure & Weak Demand Indian Black Pepper Prices Stays Firm Post Diwali Black pepper India: Export rise in 2021?