Domestic production of pepper expected to fall sharply

20-May-2025 11:01 AM

Kochi. Domestic production of pepper is expected to decline significantly due to unfavourable weather conditions in key producing regions of Karnataka, Kerala, and Tamil Nadu. Official estimates suggest that production may fall from 1.26 lakh tonnes in the 2024-25 season to just 76 thousand tonnes in the 2025-26 season.

Industry and trade sources believe the actual production could be even lower. Similar weather-related issues have also affected pepper production in Sri Lanka and Vietnam.

India consumes around 60 thousand tonnes of pepper annually, and this figure continues to rise. However, official sources suggest that domestic supply will remain stable due to a carryover stock of about 50 thousand tonnes.

Additionally, a sharp increase in low-cost imports is expected to limit any substantial rise in prices. Pepper imports have already risen from 14 thousand tonnes in the 2023-24 season to 24 thousand tonnes in 2024-25.

Indian pepper is known for its superior quality, which keeps its export offer price higher than that of other supplier countries.

Currently, the export offer price for Indian pepper is around $8650 per tonne, compared to $7200 per tonne for Sri Lankan pepper.

According to Spices Board data, India exported just over 19 thousand tonnes of pepper between April 2024 and February 2025, earning $802.30 lakh.

This marks an 18 percent increase in export volume and a 40 percent rise in revenue compared to the same period of the previous financial year.

Given the adequate domestic availability, producers and traders are urging the government to restrict imports. They propose setting a minimum import price above domestic rates and reducing the annual duty-free import quota from Sri Lanka, which currently stands at 2500 tonnes.