The availability of black pepper in the domestic market is seeing an increase due to the ongoing harvest of new crops in Kerala and regular imports from Sri Lanka. This increase in supply is expected to put pressure on prices, especially as business activity remains slow. However, analysts are predicting a decline in black pepper production by 10-15 percent during the 2024-25 season, mainly due to unfavorable weather conditions in key producing states like Karnataka, Kerala, and Tamil Nadu.
While the price of black pepper has risen slightly in recent days, this increase is not expected to last. Two key factors are influencing this trend:
Direct Purchases from Farmers: Traders and stockists are bypassing regulated auction centers and are purchasing black pepper directly from farmers in producing areas at relatively lower prices, which is putting downward pressure on prices in the auction markets.
Cheap Imports: Black pepper from countries such as Sri Lanka is being regularly imported into India, contributing to a higher supply and preventing a sustained price rise.
Despite these factors, the price of black pepper in Kochi's terminal market is still around Rs 660-675 per kg, which suggests that prices have not softened significantly yet.
On a positive note, India's export performance of black pepper has been better this year. Between April and September 2024, the country exported 10,150 tonnes of black pepper, which is a notable increase from 8,094 tonnes during the same period in the previous year. This rise in exports has also boosted the income from black pepper exports.