In the flavorful realm of spices, a spell of sluggishness envelops the pepper market as pre-monsoon showers drench Kerala and oppressive heat blankets South India, including Karnataka. Despite lackluster trading in domestic shops, pepper holds its ground with resilience. However, this unwavering strength may waver in the upcoming days due to persistent sluggishness and higher import rates.
Delayed monsoon
The Meteorological Department foretells a delayed monsoon arrival in Kerala, postponing the customary June 1 to June 4. Currently, Kerala experiences a lavish downpour almost daily, while neighboring Karnataka and Tamil Nadu endure the sticky embrace of pre-monsoon heat. The market, including the pepper trade, slogs through this sultry climate in Kerala and Karnataka. Nevertheless, reports reveal that pepper remains sturdy, buoyed by relatively higher import rates.
The new crop of black pepper has been underway in Kerala for nearly half a year, yet it trickles into major shops like Kochi in small quantities. Intriguingly, deals for Disavar in these shops are scarce, as buyers favor direct procurement from farmers. Thus, whispers of inertia encircle black pepper in Kochi. The supply from key producing states, such as Karnataka and Kerala, has been tighter than usual due to unfavorable weather conditions, although the heat has now become a concern.
Traders express despondency as they need help generating typical market pressure for the arrival of the new crop in significant shops. Speculation abounds of a potential 20% decline in black pepper production in Kerala this season. Moreover, imports from Vietnam and Sri Lanka contribute to the market’s rhythm.
Direct trading
In the past, government crackdowns on imported pepper caused a slight uptick in domestic prices, driven by the anticipation of supply disruptions. Although Kerala witnessed abundant rainfall during the previous monsoon season, lackluster farmer sales dampened the market’s spirit. Reports highlight direct consumer market transactions occurring in rural areas of Kerala, with buyers directly procuring black pepper from farmers. Such deceleration has become a recurring theme. Over the past few years, direct trading of various commodities, including pepper, gained traction in Kerala, contributing to the passive activities in shops across the state. Experts opine that black pepper will remain in the doldrums in the days ahead.