Pepper prices are on a correction mode having touched a ten-year low and would stay firm until the new arrivals from India and Vietnam come to the market ,traders said. Global pepper production is also estimated to fall in 2019 , according to the International Pepper Community (IPC) with Indian production set to drop. India is the largest consumer of pepper in the world and the second-largest producer after Vietnam.
Jojan Malayil, chief executive officer of Kochi-based Bafna Enterprises told FE that pepper prices are on the correction mode after falling to a low of Rs 168 per kg globally when Vietnam was selling at ASTA quality pepper at $2,450 per tonne.
“Vietnam has sold almost 1,90,000 tonne till September and has stocks left. Brazil is selling round the season with new production areas coming up in the south side. Good price for pepper in the past few years prompted many farmers to take up pepper in Vietnam, Brazil and other countries. Cambodia is a major producer of pepper now,” he added.
Domestic pepper is trading around Rs 350-370 per kg and likely to move up on festival demand from North India, he said. Indian new pepper starts arriving in the market from December .Pepper is used extensively in the Indian cuisine unlike other producing countries which export most of the pepper farmed.
The Jakarta-based International Pepper Community (IPC) projects the total world pepper production in 2019 at 4,94,200 tonne as against 5,23,400 tonne in 2018.
Indian pepper production is projected to decline in 2019 to 47,000 tonne from nearly 64,000 tonne in 2018.
Domestic consumption for 2019 is estimated at 58,000 tonne with imports at 17,700 tonne and exports projected at 17,000 tonne.