Prices of the food additive black pepper soared by almost 74 per cent to Rs 279.67 per kg in the first week of May this year compared to the year-ago period on speculative buying.
The wholesale price of black pepper in the corresponding period of the previous year was Rs 161.17 per kg, according to Spice Board data.
Wholesale prices of black pepper in May 2011 have increased by 12.24% compared to the same period last month, when the price was Rs 249.17 per kg, traders said.
They attributed the rising prices to speculative buying of the commodity as there is no major demand for Indian pepper at this time.
"The rate of black pepper is mainly rising due to speculation. There is no major demand for Indian pepper both in the domestic and global markets at this time," a trader from Bafna Exports, a leading exporter of black pepper, said.
The farmers are holding the stocks in anticipation of black pepper prices touching the Rs 300 per kg mark, he added.
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Prices in Vietnam, the world's leading pepper producer and exporter, are hovering at around Rs 248 per kg, which is way lower than the prices in India, he noted.
Production of pepper in India in 2010-11 is projected to touch 48,000 tonne this year, compared to 50,000 tonne last year.