Pepper prices may remain strong if imports are limited

04-Jul-2025 04:48 PM

Kochi. The harvesting and preparation of the pepper crop in Kerala is nearing completion, while in Karnataka, the process is still ongoing. Kerala received good rainfall during May and June, which is expected to benefit the next pepper crop. Karnataka received less rainfall, allowing uninterrupted harvesting of the current crop.

However, torrential rains in some major consuming states and the risk of flooding in certain areas may impact transportation.

Although pepper stock levels are reported to be normal in most consumption centers, they may begin to decline due to reduced arrivals from producing regions during heavy rains in July and August.

With the arrival of new pepper stock in Sri Lanka, imports into India are expected to rise. Under the bilateral free trade agreement, up to 2,500 tonnes of pepper can be imported duty-free from Sri Lanka, and even after that, only 8 percent customs duty applies. Vietnamese pepper also enters India via Sri Lanka.

In the past, pepper from Vietnam, Indonesia, Thailand, and Brazil was smuggled into India through neighboring countries like Nepal, Bhutan, Myanmar, and Bangladesh. However, stricter border vigilance has largely curbed this route.

As the off-season for pepper supply approaches and domestic consumption rises during the upcoming festive season, a tighter supply situation may emerge.

Production declined in the 2024–25 season, while exports increased. If manufacturers of spice oil and oleoresin increase their purchases and imports remain limited, prices are likely to strengthen.

Pepper exports from India rose from 17,890 tonnes in the financial year 2023–24 to 20,830 tonnes in 2024–25, which includes total re-exports. Export earnings also surged from ₹736.48 crore to ₹1,055 crore during the same period.