It was only towards the end of last month that the black pepper market started experiencing a bullish phase, and the trend continued on the first day of November. However, the following day the price remained steady for the spice.
Amidst higher local demand for the spice with a lower supply of Black pepper in Kochi, the spot market prices are expected to increase. The main reason for the price increase is stockists are keeping their stock with the expectation that the prices will increase in the coming days.
As per experts, the price of Indian Black Pepper is likely to increase due to the lowering of supply in the global market by the leading producers of Black Pepper. It has been reported already Brazil exported 8.7 percent less Black Pepper during the first nine months of 2021, which was about 61.845 tons.
The country with a new harvest on its way is likely to pick up the export of Black Pepper. According to the Brazilian Ministry of Industry, Foreign Trade and Services (MDIC), it has already increased its export quantity by 44.5 percent in September compared to its August supply. Compared to last year during the same time, the export quantity has increased by 19.3 percent.
With winter coming and the festivals, the domestic demand will continue in the spot markets along with the opening of purchases from the US, Europe, China, Africa, and the Middle East will support the price increase for Black Pepper.
Black Pepper 500 GL
|November 2||$5,76 per kg FOB|
|October 27||$5,75 per kg FOB|
Since its price increased on November 1, the price remained steady at the same on November 2. However, Black Pepper 500 GL recorded a price increase on October 27, October 25, and October 19.
On October 2, the MG1 grade traded for $649.62 per quintal.
Farmers of Black Pepper in India are concerned about its production for 2022. Due to heavy and continuous rainfall, the standing crops are likely to face some growing issues as the moisture content on the soil has become relatively high.
Karnataka’s Black Pepper growing areas like Kodagu, Hassan, and Chikkamagaluru can have lower production due to the erratic climate plaguing these regions of the state.
Factors indicate a low supply of the spice into the market, alongside large spice importers looking towards India to fulfill their requirement for the year-end demand and eventually leading traders fetching a good price for Black Pepper in the coming days and months.
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