The price of indigenous black pepper remains strong in the markets of Karnataka, despite the ongoing imports from countries like Sri Lanka and Vietnam.

This strength in price can be attributed to a decrease in the availability of old stock and the delay in the arrival of the new crop, which is expected to pick up in full force by the first quarter of next year.

In Karnataka, the production is expected to be below normal, and producers are holding back their stock in anticipation of higher prices.

In contrast, the demand for black pepper has softened after the festive season in North India. While the stock of cheaper imported black pepper remains abundant, domestic consumption is currently being met, particularly during the Lagnasakara season, which does not require additional imports.

Moreover, export demand is relatively subdued, with major importing countries only making limited purchases to cover short-term needs, and awaiting the arrival of new crops.

The price difference between the imported and local black pepper is becoming noticeable, as it’s not proving economically viable to transport pepper from Kerala’s Kochi market to North India.

For instance, the transportation cost to Delhi stands at Rs 740 per kg, while the price of old stock in North India is between Rs 725-750 per kg, making it less attractive for traders to move pepper over such distances.

This price discrepancy, combined with the subdued demand, is likely to influence the black pepper market in the near future.