Black Pepper Rising Prices as Stock Shrinks and Demand Increases
Black pepper prices are steadily climbing as stock levels drop and winter demand picks up in India. Traders in the market expect prices to rise further before the new crop arrives.
This year’s production has suffered a setback, with estimates showing a 30–35% decline compared to last season. Last year, India produced 65–70 thousand tonnes of black pepper, but this season’s output is expected to fall to just 50–55 thousand tonnes.
Weather Troubles Hit Crop Yields
Farmers faced difficult growing conditions this year. A dry spell from April to June left plants struggling, and heavy rains that followed further weakened the crop. This combination has taken a toll on both quantity and quality.
In February last year, black pepper was priced between USD 6,57–6,81 per kg when production was higher. Currently, prices have climbed to USD 7,88–8,00 per kg for Mercara. Premium grades like 11.5 and 12.5 are now fetching USD 8,24–8,52 per kg.
India’s Stock and Import Situation
India is currently running low on black pepper stock, with only 15 thousand tonnes of old inventory left. Domestic consumption remains high at around 60–65 thousand tonnes annually. To meet demand, India imports most of its black pepper from Sri Lanka (about 90%) and a smaller share from Vietnam (10%).
Traders believe that black pepper prices could rise by USD 0,60–0,90 per kg soon. By April, prices may reach USD 9,69–10,30 per kg as demand continues to outstrip supply.
Conclusion
Black pepper prices are set to climb in the coming months, driven by reduced production and steady demand. Farmers and traders alike are grappling with the effects of weather-related challenges, while the market continues to see robust interest from domestic buyers and exporters. With limited stock and high demand, black pepper remains a valuable commodity this season.
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