With bulk of the pepper produced in the state being contracted at the primary point itself, Kochi is likely to lose its sobriquet of being the ‘terminal market for spices’. Trade has shifted to primary markets Manathavady, Sulthan Battery, Kumily, and Kannur, with only very small volumes being transported to Kochi.
Major exporter Kishore Shamji explains that arrivals at the Kochi market have declined by 90%. Traders estimate that depending on yearly production, Kochi used to receive 70,000-90,000 tonne.
Currently, spot market availability of pepper is minimal and trading volumes at the 50-year-old commodity exchange of Indian Pepper and Spice Trade Association (Ipsta) has dwindled. Members have stayed away from trading in the past few years or have shifted to new commodity exchanges.
The regional exchange; formed in 1957, was once the only exchange in the world to trade in pepper futures. Currently the volume of trade has dropped from 400-500 tonne per day to less than 20 tonne.
The spice warehouses of Mattancherry have been converted or closed down. Traders are holding stocks at accredited warehouses of commodity exchanges, which is cheaper and convenient, Shamji said.
Upcountry traders buy from Manthavady (Wayanad), Kumily (Idukki), and Kannur directly, with improved access and communication, he said. They are willing to pay more to farmers by eliminating intermediaries. It is convenient to take the commodity out through Tamil Nadu and Karnataka.
According to old traders, with supply shortage, exporters are finding it difficult to procure pepper from Kochi market in bulk. Trade is suffering. The reduction in exports due to the emergence of Vietnam and increasing domestic consumption, has also contributed to the new shift.