Domestic market price of black pepper softens due to increasing imports from abroad

07-May-2025 01:49 PM

Kochi. Imports of black pepper from Sri Lanka and Vietnam are increasing rapidly, leading to a softening of prices in the domestic market. Over the past fortnight, the price of black pepper has declined by Rs 25 per kg.

According to trade analysts, the current price of ungarbled black pepper at the Kochi terminal market is Rs 695 per kg, while garbled pepper is priced at Rs 715 per kg.

A few days ago, the ungarbled variety had reached a high of Rs 721 per kg. In the last two weeks, a total of 616 tonnes of black pepper were traded in this terminal market.

Meanwhile, the price of black pepper imported from Sri Lanka is lower, ranging between Rs 675-690 per kg at various consumer centres.

Spice manufacturers are showing strong interest in purchasing this cheaper Sri Lankan pepper to meet their production needs.

The president of the Indian Pepper and Spice Trade Association (IPSTA) noted that due to falling prices, buyers are holding onto their stocks and increasing new purchases, while producers and stockists are limiting sales.

Farmers also believe that prices may decline further and have started releasing their stock in key producing areas of Tamil Nadu such as Gudalur, Yercaud and Namakkal.

Buyers are actively negotiating with producers in these regions. Indian black pepper is priced higher in the global market compared to exports from other countries, largely due to its superior quality and high domestic prices.

Export offer prices for Indian pepper are currently at a high of $8650 per tonne. In contrast, Sri Lankan pepper is offered at $7200 per tonne, Vietnamese at $7100, Brazilian at $7000, and Indonesian pepper at $7500 per tonne.

The high price of Indian pepper has prompted major producing countries to target the Indian market for exports.

According to the IPSTA president, imports from Sri Lanka increased from 14,000 tonnes in 2023-24 to 24,000 tonnes in 2024-25, a rise of 10,000 tonnes.