India: Black Pepper Price Is Expected to Be Bullish in Future

Current Scenario 

• The local demand has been picking up as the consumption has increased due to the weddings. As a result, there is a shortage of corns in the North Indian market. It is despite the arrival of the crop from Kerala and neighboring states. So, the traders are using foreign corn to fulfill the local demand.
• As per reports, any shortage of imported products would have moved the market up much earlier.
• Reports state there is a decrease in crop yield. Also, there is a decrease in the quality of the grains.
• Last year the overall production decreased from 64 thousand metric tonnes to 52 thousand metric tonnes. This year it is estimated to be reduced by between 45 and 46 thousand metric tonnes.
• The crop is ready in Coorg, Cochin, and Shimoga areas, but all these places have a lower yield per hectare.
• The black pepper arrival in Vietnam has started, but the price is high compared to last year. The current price of Vietnam black pepper for import at ports is between $7.45 and $7.58 per kg; the importers are hence looking towards other sources to fulfill their demand.
• Overall, there will be a shortage of the product in the coming days, and with good domestic demand, the market will be bullish for Indian black pepper. Hence there is no risk for traders in the business.
• The current auction price in local mandis of the black pepper premium quality is $7,85 per kg, while 500 GL is auctioned at $7,97 per kg.
• The trend has been picking up across this month, as light and heavy pepper have stopped arriving from aboard. Also, insufficient goods are reaching from the Coorg, Shimoga, and Cochin lines while the demand is still rising.
• Earlier, it was expected that the consumption would be over by this time. However, the estimate failed, which is now helping the market move up.

Future Trend

Kerala, one of India’s leading black pepper producers, experienced unseasonal rainfall and flood during the harvest, which has affected the crop. The yield has lowered. As a result, this season, as per market experts, the price of the spice might increase in the coming days.

 Price Trend

Black Pepper 500 GL

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