Over the next two months, Indian pepper prices may drop below Rs 400 a kg as the International Pepper Community (IPC), an intergovernmental organization of pepper producing countries, has finalized Indian pepper production. In 2013, it was 55,000 tons. This figure is nearly 30% higher than the 2012 crop.
Since June, Indian pepper prices have been above Rs 400 a kg, due to a sharp drop in supplies. Although the 2011/12 crop production forecast is only 43,000 tons of pepper, the actual output is lower. As a result, prices have risen higher.
“Most manufacturers have liquidated their products when the prices are between Rs 350-400 / kg. Prices are likely to fall as the next crop is expected to arrive early in December, ”said Kishor Shamji, a major exporter and former president of the Indian Pepper and Spices Trade Association (IPSTA) for know.
The exchange also expects pepper output of about 60,000 tons, which may be the highest level in the past few years. Price of futures since October has fluctuated between Rs 420-440 / kg while spot prices hit a high of Rs 424 on October 30.
The Cochin Hill Manufacturing Business Association sent a complaint to the Commission on the Future Markets (FMC) and Professor KV Thomas, Minister for Consumer, Food and Public Distribution, seeking Intervene to prevent corporations from manipulating prices on the trading floor, leading to the price of Indian pepper becoming uncompetitive in the world market when it is 2,000 USD / ton higher than the prices of other producing countries.
The association believes that these corporations have used their influence to prevent defenders from making deposits in the exchange's warehouses for reasons of poor quality. Global price trends in 2013 remained stable due to IPC's forecasts of lower Vietnam and Brazil pepper output, the two major producers will have a poorer harvest.
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