Pepper output projected to stay below domestic demand

Narayanamurthy S Updated - January 13, 2018 at 01:05 AM.

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Even as the latest projection places Indian pepper production in 2017 much below earlier estimates, spot pepper prices in the country have fallen by ₹7,700 a quintal in five weeks.

The spot prices for garbled and ungarbled, which were ruling at ₹66,000 and 69,000 a quintal on January 13, dropped to ₹58,300 and ₹61,300, respectively, on February 21.

The reason attributed to the fall is mainly the reported increase in availability in the world market. World pepper output was projected by the International Spice Conference held in Thiruvananthapuram last week at 4,58,500 tonnes, up from 3,86,000 tonnes in 2016.

It estimated Indian production at 50,000 tonnes this year as against 66,000 tonnes in 2015 and 32,000 tonnes in 2016. At the same time, domestic demand is projected at 55,000 to 60,000 tonnes, Kishor Shamji, a veteran pepper trader and exporter told Business Line.

A drop in the area under the crop, low productivity and consequent high production cost has made pepper cultivation unviable, PV Eliyas, a farmer in Meenangadi (Wayanad), told Business Line.

The situation is not much different in Kerala’s spice district, Idukki, growers there said.

“We were expecting a comparatively good crop in 2016-17 following the summer showers last year. But the situation has changed dramatically after the failure of both the monsoon rains. As a result, there is a decline in the crop by 30 to 40 per cent, a major grower in Kottayam district said.

The output situation in other regions such as Pathanamthitta, Kollam and Thiruvananthapurm districts is also not different.

The official output projection for 2017 was at 55,500 tonnes as against 48,500 tonnes in 2016.

Published on February 23, 2017 16:13