Due to unfavourable situation in the global market, black pepper prices have fallen to lower levels in India.
The exporters here told Business Standard that it might go down further to Rs 6,000 per tonne. Current price for the garbled variety is Rs 8,700 per tonne and for ungarbled variety it is Rs 8,100.
As the price level in the domestic market is much higher than that of the global one, export demand is meagre in the Kochi market.
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It is reported that Indonesia will be controlling the global market in the near future since the companies there are procuring pepper in a large scale and not even quoting the selling price.
Amin Jaya, the largest exporter of Indonesia is buying pepper in large quantities at lower prices.
The resellers in Singapore have sold pepper at a price tag of $1,550 per tonne to European importers.
The interesting fact is that even in Vietnam which offers the lowest international price for the past few months the price is 1625 $ per tonne.
The currewnt price in India is at par with that of Brazil; 1950 $. Mainly because of the huge difference in the price level India is not a favourite market for the importers especially from the US.
But Brazil is ready to compete with other nations as they had already sold 5000 tonne of pepper for shipment in August and September at a price tag of 1650- 1750 $.
The market sources here expect a further downward trend in the international market as the situation so demands. They expect a stabilty at the level of 1500 $. The indication from the US importers is in that way.
For shipment in January they offer 1425 $ only and this shows the future trend in the market. Because of the good monsoon in Kerala it is believed that the production will be higher in the next season.