MUMBAI (Commodity Online): India’s pepper rose 31.44% to Rs 39610 per qtl during the month of February 2012 due to production shortfall amid high domestic, overseas demand. Domestic prices are much above that prevailing in other pepper origins and consuming markets.
In India, the price of the commodity rose to $8,500 per ton while in Europe, pepper is prices at $7,800 per ton.
India is the fourth largest producer of pepper and this year the production is expected to be to be 43,000 tonnes in 2011-12 against earlier estimates of 48,000 tons . Meanwhile, last year, country’s pepper production was 45,000 tons.
The shortfall is mainly due to the decline in production in India’s two major pepper producing states – Kerala and Karnataka. The production is expected to decline 40% and 20% respectively in both states.
Meanwhile, in Vietnam, pepper harvesting has started and yet there were not much arrivals in the market.
India’s pepper prices rose 30.61% to Rs 29,780 per qtl during the Year-on-Year in February 2012 (1st February 2011 – 31st January 2012).
In India’s National Commodity and Derivative Exchange (NCDEX), the pepper for March delivery traded up 2.775 to Rs 42,970 per qtl on 7th March.