After months of decline, the global price of black pepper is witnessing a stable trend. It is likely to move northwards by 2020 due to narrowing gap between demand and supply, said Hoang Thi Lien, Executive Director of the International Pepper Community (IPC), an intergovernmental organisation of pepper producing countries.

There is excess supply in the market and it likely to ease in the next two years. However, she warned farmers not to expect sky-high prices in the coming years, saying that those price levels were fuelled by speculation and not real demand.

Lien was in Kochi for the launch of a farmers’ app for pepper cultivators developed by IPC in association with the All India Spices Exporters Forum.

The price of pepper saw a falling trend during the second half of 2016, worsening in 2017. However, it was less volatile in the second half of 2018. The global prices are averaging around $3,000 per tonne now, she said.

To a question, she said the minimum import price introduced for Indian pepper is not a correct step as rates are declining in all the producing countries. Going forward, quality will be key in determining the prices, she said by pointing out examples of Kampot pepper from Cambodia and Muntok white pepper from Indonesia. The premium quality will fetch better prices.

According to Prakash Namboodiri, chairman, AISEF, the personalised app for pepper farmers would provide information like farm practices, fertiliser recommendations, pest and disease identification, weather and price movements.

Introduced by Spices Board chairman MK Shanmugha Sundaram, it will available in English, Malayalam, Tamil and Kannada.

comment COMMENT NOW