Political turmoil hit pepper demand in North Indian markets

A sluggish demand in the consuming markets in North India coupled with the availability of smuggled pepper from across the borders seem to have impacted the prices in Kochi’s pepper market on Thursday, which was lower by Re 1 per kg.

The prices have seen a southward movement in the last couple of days because of the emerging situation.

Traders attributed the decline in demand to the current political situation in many north Indian cities as well as the buyers expectations for the new crop arrival.

The new crop arrival is expected to pick up pace by mid-January. The normal demand during winter was in the range between 6000-7000 tonnes per month. But, now, the demand has reduced.

The industry also appears to be slow on procurement, which has also led a slowdown in the market. Because of the low demand, majority buyers in the upcountry markets are now waiting for a price fall, said Kishore Shamji of Kishor Spices.

The arrival of new crop into the market has already commenced, as is evident from the quantity offered at 17 tonnes. The average price realisation for ungarbled varieties was Rs 323 per kg and new pepper closed at Rs 308. MG1 garbled stood at Rs 343 per kg.

If the prices drop further, farmers and dealers in the primary markets may not part with their produce or stocks, he added.

Moreover, the recent Central Government action against pepper imports from Sri Lanka has brought a new hope to the farmers - that the Government is very active regarding such illegal shipments. As a result of the Government action, the December imports from Sri Lanka above Rs 500 MIP had reduced to a double digit figure of 79 tonnes compared to 250 tonnes in November. He said, “On an average, it was 750 tonnes during August, September and October in 2019.”