After two years of staying at the backseat, black pepper is now all set to steer the prices in the market. It has already crossed the Rs. 400/kg mark for ungarbled varieties and is riding high in the Kochi terminal market. On June 10, the prices of this spice touched Rs. 405.kg and the garbled grades touched Rs. 425.
According to traders, the reason for this astounding price rise is the supply crunch due to Covid lockdowns that had led to the closure of primary pepper markets in rural areas. Along with this, a commendable demand for raw materials from spice manufacturers has also led to the soar in prices.
Also read why India is called the land of spices.
Sri Lankan imports are an issue of concern
Spice traders of Kochi are concerned over the increased imports of Sri Lankan pepper into India this year. This is as per the International Pepper Community figures that were submitted at the American Spice Trade Association meeting in the month of May.
It was highlighted in the meeting that Sri Lankan production would increase by 25% in 2021 at 25,000 tonnes in addition to the carry forward stock of 12,000 tonnes in the year 2020. As per a report, home consumption of pepper in Sri Lanka is 12,000 tonnes.
So, it is normal to presume that 2021 crop from this area would be available for exports. The declining price scenario in the global front may create a strong possibility that this pepper from the neighbouring nation would come to India.
From January to April this year, Sri Lankan pepper arrived in the Indian market in huge numbers. It was 4000 tonnes, which was the highest in the last 3 years.
