Indian pepper prices kept low by slack demand
Indian black pepper prices remain low due to sluggish domestic and export demand during the fortnight to September 27, Olam Spices & Vegetable Ingredients stated.
However, the company also noted that supply remains tight at lower price levels as trader/farmers are reluctant to actively participate at current price levels
Rainfall across growing areas of Kerala and Karnataka continued to be insufficient during the last two weeks to September 27, and this is slowly affecting the stock release sentiments for the next two-three months domestic supply.
Price differences between high bulk density and low bulk density stock widened due to blending of light pepper in low bulk density stock, Olam Spices explained.
“High moisture levels of farm grade arrivals are further weighing the price competency of Indian sales parities above the current price disparity with other major origins,” it added.
Near-medium term view
Olam Spices predicts that ungarbled black pepper is likely to trade in a range of INR690-705 (USD10.36-10.58) per kilo for the near term, based on domestic demand for the next two to three months against the stock release pattern by traders/farmers.
The company indicated ungarbled Indian black pepper of 550-560 g/l at INR695-703/kg ex-Cochin and ungarbled 580-600 g/l material at INR698-708/kg.