Indian Black Pepper Market Becoming Bullish

There is an increasing number of sales of the new black pepper crops in the market in south India. The arrival of new crops is helping the market with a positive trend.

Current Scenario  

Several factors are making the black pepper market in India go bullish, and according to experts, the trend is expected to continue in the coming days.

• The farmers of Kerala are selling their produce directly to the traders. As a result, the quantity of the new crop in the spot markets is less than expected.
• Even in Karnataka, the market arrival of the new crop is of sporadic nature.
• The arrival of the new crop has been affected by the earlier lock-downs and curfews imposed due to the COVID-19.
• The restrictions also affected the picking and transportation of the new crop in the market. As a result, despite being harvested for two months now, the arrival is late.
• The availability of the new crop is seen in the villages instead of the prime markets like Kochi.
• This has resulted in traders and stockists going straight to the farmers to buy the products instead of going to the significant spot markets, where the arrival of the new black pepper crop is less.
• Also, the news of lower commodity production by 8 to 10 per cent makes traders and stockists active in the markets. They are buying for the future even when the price is moving up.
• The reduced production of the pepper results from farmers moving to sow other crops instead of black pepper. The reason is that the commodity fetched less price than other crops for the last two years.
• Earlier, the domestic market went under pressure after traders imported the spice from Sri Lanka and Vietnam since their prices of black pepper were less than the Indian produce.
• Now, the market scenario has changed; the import is less, thus helping the domestic crop thrive.

Prediction 

• In the future, the Indian black pepper market is expected to benefit from the lower production of Vietnamese black pepper.
• As a result, both domestic and international buyers will look towards India to fulfil their demands.
• Market experts believe this will allow the Indian black pepper market to stay firm this year.
• The global production of the commodity has gone down. But the demand for spice has increased for its medicinal properties. This will also move the black pepper price up in the international market.

Price Trend

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