Pressure on black pepper prices due to outstanding stock and high imports
29-Aug-2024 04:56 PM
Kochi. Due to the presence of high stock of outstanding goods in the domestic market and importers selling the product at low prices,
the domestic producers are also being forced to sell their stock by reducing the price, which is putting pressure on the prices of black pepper. Within the last three weeks, the price of this important spice has fallen by Rs 14 per kg.
According to trade analysts, the price of black pepper in the terminal market of Kochi has come down to Rs 666 per kg for the garbled category and to Rs 646 per kg for the ungarbled variety.
On an average, 20-25 tonnes of black pepper is arriving daily in the terminal market, in which the majority is of imported goods.
The director of the Indian Pepper and Spices Trade Association (IPSTA) says that a large quantity of black pepper is being imported from Sri Lanka. In July 2024 alone, a total of 5085 tonnes of black pepper was imported from various countries, including 4400 tonnes from Sri Lanka alone.
Heavy selling pressure of this imported goods is being seen in the market as importers are trying to sell their surplus stock as quickly as possible.
This has created a panic situation in the market. The indigenous producers are having to reduce the price of their stock to stay in this competition.
There is a possibility of some further decline in the price of black pepper in the coming time.
A huge stock of black pepper imported from abroad is already present in most of the major centers of the country, but its quality is said to be weak.
As a result, dealers (sellers) are having to sell that stock at a low price, due to which there is an environment of softening in prices.
The festive demand for black pepper has not yet gained momentum in the Disawari markets. Heavy monsoon rains in most of the major consuming states have made the weather unfavourable and traders in Disawari are buying pepper in limited quantities.
But with the strong festive demand in northern India, stability is expected to return to the pepper market and the trend of falling prices may end.