Adverse weather likely to affect pepper production

18-Mar-2025 04:11 PM

Adverse Weather & Reduced Plantation May Impact Pepper Production

Key Highlights:

• Pepper production in India is expected to decline sharply due to adverse weather and a reduction in plantation area.
• Government Estimate:
  • Production may fall 38% to 78,000 tonnes in 2024-25, compared to 1.26 lakh tonnes in 2023-24.
  • Plantation area reduced from 3.13 lakh hectares to 2.55 lakh hectares.
  • Actual production could be around 75,000 tonnes, as per IPSTA estimates.

Impact on Prices:

• Sharp price rise in major pepper-producing states:
  • Karnataka: ₹725/kg
  • Kerala: ₹705/kg (garbled), ₹685/kg (ungarbled)
• Government stock of 50,000 tonnes combined with new production will make total availability 1.25 lakh tonnes.

GST Exemption Boosts Market Sentiment

• The Union Finance Ministry granted GST exemption to pepper producers, small farmers, and growers for inter-state trade.
• The decision, influenced by an MP from Karnataka, boosted prices in Karnataka and Kerala.

Market Outlook:

• Domestic demand remains strong, which may push prices further up.
• Producers from Tamil Nadu & Andhra Pradesh are also seeking GST exemptions.
• Global pepper supply & demand trends will also influence prices.