Last year was good for pepper producers due to better production and strong demand

01-Jan-2025 01:03 PM

The year 2024 was a good one for Indian pepper producers, thanks to an increase in both production and demand, which led to strong profits. Domestic production rose from about 80-85 thousand tonnes in 2023 to nearly one lakh tonnes in 2024.

Despite the rise in imports, especially from Sri Lanka, the domestic market remained strong, and the overall demand for black pepper surged. As a result, Indian pepper producers saw significant returns, although the influx of cheaper imported pepper reduced potential profits.

One contributing factor to the rise in production was the expansion of black pepper plantations in states like Tamil Nadu, Karnataka, and Rajasthan, which began yielding results.

Additionally, favorable weather conditions in traditional producing areas like Kerala and Karnataka led to higher yields in 2024.

The Indian Pepper Community (IPC) noted that at the start of 2024, there was a stockpile of 51 thousand tonnes of black pepper.

This, combined with strong domestic demand, saw the consumption of black pepper soar to 1.31 lakh tonnes, driven largely by increased demand from readymade spice manufacturers and rising consumption of whole black pepper.

However, the year ahead (2025) may not be as promising. The pepper industry anticipates that production will be partially affected by adverse weather conditions, leading to potential challenges.

Additionally, while the import of black pepper grew to around 40 thousand tonnes in 2024, much of the imported pepper was sold at lower prices in the market, causing significant losses to Indian producers, especially in local markets like Disawari.