Indian Black Pepper is in good demand in the International market

Across December, the Black Pepper prices remained between steady and firm, with few drops occasionally. Despite the prices going down at times, the market quickly recovered and moved towards an appreciative mode. However, there was a sudden price drop on December 28, but on December 29, the market went steady for the commodity.

Market Sentiment

• On December 27, the Indian Black Pepper sold at an improved price compared to Vietnam’s Black Pepper.
• Indian Black Pepper is making a good impact in the international market since its quality is better than Vietnam’s commodity.
• India is in a good position with its Black Pepper market internationally since there is reduced crop production in China due to unfavorable weather.
• As a result, China is increasing its Black Pepper import.
• Also, Indonesia’s production of the crop has declined.
• The Indian market prices for the commodity will improve soon since the new Black Pepper from Vietnam won’t be available in the international market until March. Hence international buyers will be looking at India to fulfill their demand.
• This year, the excessive rain in the Black Pepper growing regions has also affected the soil’s moisture content. Higher moisture content can cause damage to the growth of the plant and its capacity to produce the pods.
• With the current trend in place, where the demand is expected to increase in coming months for Black Pepper from India, markets like Kochi are holding on to their stock.
• The anticipation of the price increase for Black Pepper comes from the fact that the purchase from major importing countries like the US, Europe, China, Africa, and the Middle East will increase. Since they are upping their import for the last quarter of the year to meet the year-end demand.
• For example, America has increased its demand for spice by 8.9 percent. So did Europe by 3.9 percent, Germany by 9 percent. So, if Vietnam fails to meet the demand, these countries will look towards India since Brazil’s new crop supply is still to arrive in the market.

Prediction

The global black pepper market is expected to increase to $6 billion by 2028 from $3.9 billion recorded in 2020. The growth rate of 5.5% will be beneficial for the Indian Black pepper market.

In the last few years, the Black Pepper farmers and traders failed to make much money from the crop, decreasing its production. As per experts Indian Black Pepper production for this year is likely to go down by 8 to 10 percent compared to last year.

As a result, the prices is expected to go higher in the domestic and international market for the commodity.

Price Trend

Price

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