MUMBAI – Black pepper market is in appreciating mode due to low production in India and major producing countries as Vietnam, Indonesia and Brazil.

Prices of average quality spice quoted $5.474 per tonnes and medium quality stuff being trade in a range of $5.568 per tonnes.

According to top exporters based in Kochi, there is absolutely no selling pressure from the growers in the high ranges of Kerala since all market stakeholders clearly indicate much higher prices by August – September. Top farmers are holding black pepper in the light of the upward trend in the market.

According to farmers, there might be a drop in production during next season, commencing by December, owing to a major shift to cardamom cultivation, leaving black pepper. This is because of the huge increase in the prices of cardamom during 2020.

The lower production of black pepper is likely to be a global phenomenon as Vietnam, the world’s top producer, expect lower production this year. According to estimates of exporters, production might be in a range of 200,000 – 220,000 tonnes this year in Vietnam.

Last year’s production was 270,000 tonnes of which the country shipped 150,000 tonnes. So, according to leading exporters of the spice carry overstock might be in a range of 30,000 – 40,000 tonnes only. This supply crunch in the global market may lead to further appreciation in prices.

Vietnam, Brazil and Indonesia, the three top suppliers, quoted $ 4000/ tone, which is almost double the price quoted in June 2020. India quotes $5725 in the international market for MG 1 grade, but there are very few takers for the Indian stuff.