At the National Commodity and Derivatives Exchange (NCDEX), the March contract moved down by Rs 110, or 0.31%, to Rs 35,580 per quintal in 2,159 lots.
Subdued spot market demands, increased supplies from a new crop in the physical markets and a likely higher output this season affected the pepper prices.
Speculators reducing positions also triggered the downtrend.
At Kochi spot market, pepper fell by Rs 118 to Rs 40,220 per 100 kg in the previous session.