Monsoon has arrived in Andaman and Nicobar Islands, and it is expected to make its debut over the western parts of Kerala on May 27. Meteorological Department has stated that the monsoons will hit the mainland in the next few days. As a result, the possibility of sluggishness in the wholesale trade of pepper has increased, according to experts.
Current Scenario
The Rates of Black Pepper is currently moving in a limited range.
For the past week, pre-monsoon showers have continued over various parts of Kerala. Soon, pre-monsoon activities are expected to start in other states of South India as well.
As a result, the pressure of the arrival of black pepper in the mandis of Karnataka has reduced considerably. However, it is eventually impacting the price too.
In Kerala, the arrival of various commodities, including black pepper, has remained negligible for the past few days.
The new crop of black pepper has been coming to the rural areas of Kerala for the last three to four months. But its arrival has been low in the big spot markets like Kochi. It is due to the direct deals with the farmers in the rural areas by the consumers.
Over the past few years, direct deals in various significant commodities, including black pepper, have increased in Kerala. It is one of the primary reasons the state’s operational activities across multiple spot markets are sluggish.
Black pepper harvesting is underway in Vietnam and India.
The Black Pepper crop has been damaged due to unfavorable weather, and the production is expected to be lower than last year.
Farmers and Traders are not willing to sell at low prices because of reduced crops.
Also, the buyer wants to see the status of the black pepper crop before the purchase; thus, buying is limited.
Forecast
The new crop of Merakra in Karnataka is also expected to be relatively weak.
Contrary to the earlier forecast, this time, the production of black pepper in Kerala is expected to decrease.
The main reason for this is for the last several years. The domestic price has not been supporting the farmers. As a result, farmers have started prioritizing other crops and replacing black pepper.
This time in Vietnam, pepper production is expected to be comparatively low. Therefore, the spot may remain in a limited range in the coming days.
According to market experts, the price won’t drop more than $0,06 – $0,13 per kg in the coming days.
Black Pepper 500 GL
| Date | Price |
| May 16 – 17 | $7,80 per kg FOB |
| May 10 – 12 | $7,85 per kg FOB |
| May 4 – 9 | $7,90 per kg FOB |
| May 2 – 3 | $7,95 per kg FOB |