Fiery Resilience: Black Pepper Market Heatwave in South India

Fiery Resilience: Black Pepper Market Heatwave in South India

Mintec Global
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Pepper, the fiery spice, is sizzling in the markets of South India, particularly in Kerala and Karnataka. Despite the sluggishness in the domestic shops, the strength of the pepper remains unwavering. With import prices relatively high, the prices of this pungent spice are expected to remain robust in the days ahead. 

Heatwave is affecting commodities

The scorching heatwave in South Indian states, including Kerala, Karnataka, and Tamil Nadu, has affected the functioning of various commodities, including black pepper. Nonetheless, pepper is displaying resilience due to the relatively high import rates. The new crop of black pepper has been underway in Kerala for the past five to six months, and though its arrivals in shops like Kochi are in small quantities, it continues to make its presence felt. Furthermore, deals for exporters in the shops have dwindled as buyers now prefer to procure directly from farmers, resulting in sluggishness in the pepper market.

20 percent decline in production

Discussions indicate a possible 20 percent decline in black pepper production in Kerala this year. Imports of this essential culinary commodity from Vietnam and Sri Lanka are also in progress, with reports suggesting that the imported black pepper from Sri Lanka commands a relatively higher price. According to the received information, the imported black pepper from Vietnam and Sri Lanka is priced around Rs USD 4.84-5.14 per kg, enticing businessmen. The government had previously tightened regulations on imported pepper, leading to a slight price increase due to potential disruptions in domestic supply.

Kerala experienced above-average rainfall during the last monsoon season, but the lackluster sales from farmers have affected market sentiment. Deals are now being struck directly between rural areas of Kerala and consumer markets, with export buyers procuring black pepper directly from farmers. The direct trading practice of various commodities, including pepper, has been gaining prominence in Kerala, contributing to the lackluster activities in shops.

As we look ahead, black pepper is expected to maintain its strength in the coming days, keeping the market ablaze with its fiery allure.

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