This applied to initial new crop arrivals from southern Kerala in the two weeks to December 28 2017, Olam Spices & Vegetable Ingredients noted in a report released on that date.
The company explained that the new crop arrivals from this area showed high moisture levels. Another market factor was that the impact of demonetisation in India was not yet fully over, as evident in the high value of the country’s black pepper in the two weeks to December 28.
Olam Spices finds that prices remained steady in the last fortnight ahead of its report due to strong demand from grinders and processors.
It noted that harvesting will be in full swing by mid-January. Due to adverse weather across growing belts, Indian pepper production is expected to be lower this year.
The company forecast that MG1 pepper is likely to be range bound for the near term. “During February-March 2018, a downward price correction is expected, but all depends on the stock release pattern by Indian farmers in 2018,” it added.
The report indicated ungarbled Indian black pepper of 550-560 g/l at INR675-685 (USD9.89-10.03) per kilo and ungarbled 580-600 g/l at INR685-695/kg, both these being on the basis of ex-Cochin.