KERALA - Market in stupor as pepper prices rise; Indian variety most expensive

 

Kochi: The price of pepper increased by Rs 30 per kilo within a day. In other words, the price per quintal went up by Rs 3000. 

This sudden and unexpected rise has created a shock in the market. Last week, the price had increased by Rs 20 per kilo

The price of ungarbled pepper is Rs 550 per kilo on Monday while garbled pepper stands at Rs 570 per kilo.  

Traders in Kerala point out the intervention of North Indian lobby as the reason for this price hike. 

They say that this is the same trading lobby that intervened to increase the price of commodities like cumin and turmeric.

Unpredictable weather changes can detrimentally affect production. 

There were campaigns that claimed pepper production would drastically reduce next year. 

This is what prompted masala manufacturing companies to procure and horde large quantities of pepper.

Some prominent companies also invited tenders to meet the chilly requirement for the next few months. 

The lobby has anticipated a demand for pepper in the near future and this intervention led to a rise in prices, traders say.

Kerala farmers continue to maintain a distance from the market. 

Those who have pepper stock in hand are not bringing the goods into the market hoping the prices may increase even more. 

With festival season coming, they anticipate a further rise in price.

Presently, Indian pepper is the most expensive in the International market. 

As per latest records, the price of Indian pepper is at 7,300 dollars per ton. Meanwhile, the price of Brazilian pepper is only 3,500 dollars per ton.

Similarly, the Vietnamese and Indonesian peppers are priced at 3,600 and 2,800 dollars per ton respectively. 

Exports from India have been on the decline for some time now but imports from Brazil and Vietnam are subject to heavy tariffs. However, even after considering this tariff, pepper from other countries have a lower price in the market than Indian pepper. 

The trade community indicates that if prices continue to rise, it will pave the way for imports.

V.P Sreelan 25 July 2023, 12:10 PM IST.

Read more at: https://english.mathrubhumi.com/news/money/market-in-stupor-as-pepper-prices-rise-indian-pepper-the-most-expensive-in-international-market-1.8760376