Marginal improvement in Black pepper prices

            Pepper, known as black gold, is a commodity of commercial importance globally.  Kerala accounts for over 90 percent of India’s pepper output followed by Karnataka and Tamil Nadu. In Karnataka the major production is from Coorg, Hassan, Chikkamangaluru and Uttarakannada. Unlike other crops, pepper being a climber is grown as an intercrop in coconut, arecanut, coffee and cardamom plantations.           

Demand for Indian pepper in the international markets remained low due to price disparity. Pepper shipments from India to the international markets were being quoted at $8,475-8,600 a tonne, while Indonesia and Vietnam were offering at about $ 1500/tonne lower than this. Global pepper production this year is expected to increase 7.2 per cent to 3.20 lakh tonnes with a sharp rise in Indonesian and Vietnamese output.

Higher arrivals of the crop in International markets have been preventing prices from shooting up a lot even as demand picked up moderately. Better crop expectations from Indonesia and Sri Lanka and sufficient arrivals in Vietnam have also prevented the rates from increasing.

Vietnam, the world's largest producer and exporter of pepper, which is now in harvesting season, is expected to produce more. Export demand for Indian pepper in the international markets is also weak due to price parity. So, Pepper is likely to trade in this range with weak basis for near term.

The NAIP – Market Intelligence Center of the University of Agricultural Sciences, Bangalore collected data on Black pepper prices from Sakaleshpura markets for the last eleven years and using econometric analysis and traders’ survey, the prices are predicted up to July 2013.  The prices of black pepper are likely to hover around .300 to .338 per Kg during May and June. In the month of July there will be a marginal increase in the price and price will be maximum in august. Hence farmers may take suitable sale decision. This forecast prevails for current market sentiments and could vary with changes in the market situation.