India: Black Pepper Price Firm

The black pepper market trend has been firm from the last week of February. While the overall trend is stable, there have been reports of price fall in some spot markets. However, the price fall was barely noticeable, ranging between $0,13 and $0,20 per kg.

Indian Market Scenario  

The black pepper crop is estimated to be the lowest in the last five years, helping the crop’s price. However, despite the arrival of the new crops in the market, the trend will remain strong for the spice. As witnessed last week, there can be a bit of a dip in the market with the influx of the new crop, but according to market experts, it will be a temporary phase.

The lower price of black pepper had once again increased the buying activity in the market, which helped improve the price. Another factor that has been assisting the black pepper market price is the lower import of the commodity from Vietnam and Sri Lanka.

Prediction For India 

In the coming days, the market for black pepper will remain strong. Market experts predict that the price of Black Pepper can move up by $7,8 – $8,45 per kg in the coming days due to the late arrival of the crop from the producing countries in the international market. Also, the decreased production of the crop will make the buyers look towards India to fulfil their demand. The only country to have increased the production of Black Pepper is Brazil.

This year, India’s pepper production was down by 8 to 10 per cent compared to the last year. Also, the increase in freight prices and the shortage of containers will support the pepper price in the international market for India.

Price Trend

Black Pepper 500 GL  

Global Overview 

The production and consumption trend of Black Pepper has been changing, and it is impacting the global market of the commodity significantly. Here is a quick overview of how the international market stands.

Vietnam 

The production of Vietnam’s Black Pepper is down due to the climate. The weather failed to support the crop, and also, with new crops arriving late, the market has suffered. As a result, there was limited domestic demand for the product last week, and the price has been down from $3,63 to $3,50 per kg.

The other factor that has affected the activity in the market and slowed down the purchase has been the long holidays for the Chinese New Year. As a result, buyers are waiting for the arrival of the new crop while the export of Vietnamese Black Pepper is down for February.

Brazil 

Brazil’s production has increased, and the Brazil Real (BRL) is stronger against the USD. Furthermore, with stable demand for the crop in the market, the price of Brazilian Black Pepper has been staying firm between $4,000 to $4,050 per MT. With the high freight prices and shortage of containers, there is no sign of the price moving south for the Brazilian crop.

Prediction 

The market can come under pressure around March/April as the Vietnamese and Brazilian crops will be available in the Indian market. But in the long-term, the Black pepper market is expected to stay bullish.

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