The revival of monsoon seems to have hit pepper arrivals to the terminal market, with farmers and primary market dealers raising apprehensions over a possible crop loss due to extensive rains and water-logging in the growing regions.
The offered quantity in Kochi on Tuesday was only 12 tonnes, but the market was up by ₹1 at ₹332 on lower arrivals and rising demand.
According to traders, Wayanad has also reported lower arrivals with some interest shown by Karnataka dealers to sell. However, the general market trend will depend on the demand in the coming days. But the continuing rains may dampen the show.
Since there is no matching arrivals, traders said that the prices may continue to rule steady.
Kishore Shamji of Kishor Spices said that the recent takeovers of masala manufacturing companies is an indication of overseas investors’ interest in the spice industry. This may boost the demand.
Global market scenario
Quoting a Vietnam market report, Shamji said the international pepper markets are moving upwards which may result in a price surge. Indonesia is in the harvest mode which will be followed by Brazil. Since Indonesian prices are lower, he said there are reports that Vietnam imported pepper from those origin to cover up their quality issues and to gain more demand for its produce. The higher prices for Indian pepper may force other producing countries to focus on Indonesian crop, he said.
According to Shamji, the new import norms from FTA countries have come into effect from Tuesday. The pepper sector is closely watching how the Customs authorities are implementing those norms to curb illegal imports into the country.
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