The Indian pepper market looks set to be very tight this year, Olam Spices & Vegetable Ingredients has warned.
In its April market report, the company noted: “Arrivals remain very tight across all black pepper origins during the month. Trade volumes are at its historic lowest levels across primary and secondary markets.”
Indian farmers continue to hold most of the country’s black pepper stock on better price expectations in future. A continuous dry spell across growing areas of Karnataka and Kerala has fuelled the price sentiments further.
Indian black pepper prices increased more than 6% during April on renewed Indian demand, Olam Spices recalled.
“Farmers are holding the major portion of stock on overall crop shortage worries and on better price expectations in the medium/long term,” the company added.
It feels that the Indian pepper market is likely to be very tight this year on low production estimates and overall unfavourable climatic conditions ahead.
There could be a slight downward price correction if there is a favourable pre monsoon rainfall in May-June, Olam Spices suggested.
The report gave indicative prices of INR650-665 (USD9.69-9.91) per kilo ex-Cochin for fair, average quality ungarbled pepper of 550 g/l.