Prices of pepper continues to see downtrend
The black pepper market experiences a sharp decline, with an oversupply situation in major producing regions and subdued demand in consumer markets. In the last fortnight alone, prices plummeted, signalling a significant shift in market movements. Government-set Minimum Import Prices (MIP) for pepper, especially from Vietnam, influence the domestic market. The influx of imported pepper and reduced demand post-Sabarimala pilgrimage season contribute to increased supply and availability, resulting in a softening of prices.
Challenges for Producers and Exporters
Indian Pepper and Spices Traders Association (IPSTA) highlights the challenges growers and exporters face as prices soften. Despite the growing demand in the domestic sector, the surplus stock of imported pepper from Sri Lanka, Vietnam, and Madagascar is impacting prices. This situation prompts growers to withhold stocks, potentially pressuring buyers to accept higher prices. The black pepper market is witnessing a significant transformation characterised by a surge in supply and subdued demand. Furthermore, limited demand for green and dehydrated green pepper in brine and elevated prices have led many processors to resort to imports from abroad in refrigerated containers.
Impact of Import Policies on Domestic Prices
Trade analysts ascribed this shift to the increasing supply and availability of black pepper in major producing regions, notably Idukki and the southern districts of Kerala. The conclusion of the Sabarimala pilgrimage season has led to a notable reduction in demand within the producing areas of Kerala, including Idukki, Kottayam, and Pathanamthitta. Consequently, the terminal market is witnessing a surge in supply and availability, resulting in a softening of pepper prices.
Farmers growing black pepper alongside coffee in Karnataka and Tamil Nadu are finding ways to protect their pepper supplies. As the new crop harvesting season approaches in Wayanad (Kerala), Coorg (Karnataka), and Tamil Nadu, exporters face challenges in the middle of the prevailing market conditions.