Pepper, known for its distinctive flavour and aroma, is facing a continued slowdown in South India, particularly in Kerala, as monsoon rains finally make their presence felt after a prolonged dry spell. The arrival and sale of black pepper have been lacklustre, signaling a long period of weakness in the market. Monsoon made a delayed appearance in Kerala on June 8, deviating from the usual onset date of June 1. Consequently, South India initially experienced a rainfall deficit of approximately 35-40%. The looming cyclonic storm ‘Biparjoy’ further fueled concerns about the monsoon’s progression across the region.
Thankfully, these concerns have proven unfounded. Monsoon has engulfed most parts of the country, including the southern states, which are experiencing bountiful rainfall. However, this deluge has resulted in sluggish pepper arrivals and sales in Kochi, Kerala. On the contrary, pepper prices remain relatively resilient due to higher import rates. Despite being amid the new black pepper crop season, Kochi continues to witness small-scale arrivals in crucial marketplaces. Surprisingly, the number of deals for exporters in the wholesale shops remains meagre, as buyers opt to procure directly from farmers. This trend has contributed to the sluggishness in the Kochi black pepper market.
Adverse weather conditions
Adverse weather conditions in Karnataka and Kerala, central pepper-producing states, have tightened supplies. Market insiders now doubt the possibility of creating normal pressure for new crop arrivals in prominent shops. Rumors suggest a potential 20% decline in Kerala’s black pepper production this season, impacting domestic and imported stocks sourced from Vietnam and Sri Lanka. Imported black pepper from Sri Lanka commands a relatively higher price, but with the onset of the monsoon, imports have nearly ceased, leaving domestic markets attractive for business.
Prior government crackdowns on imported pepper raised concerns over supply disruptions, prompting a slight price increase. However, negligible farmer sales in Kerala and direct deals from rural areas to consuming markets have dampened sentiment. Amidst the season’s showers, market analysts opine that the black pepper will remain bearish in the future due to all the contributing factors listed above.