Commodity prices (Pepper)

Important markets of Pepper

Pepper is mostly produced in South India and therefore almost all important markets are located in South India. Major markets of pepper in India are Cochin, Alleppey, Calicut ,Nedumangad, Konni, Adoor, Pala, Alwaye, Thodupuzha, Chalakudy, Badagara, Cannanore, Tellicherry, Kanjangad, Kasaradod and Mumbai.

Market prices

Average farm price of pepper in Kerala moved upwards from early nineties and reached a peak level in 1999-00 with Rs 215 per kg. Since then declined to Rs.124 per kg. in 2000-01, Rs. 67 per kg.in 2001-02 to Rs. 60 per kg. in 2004-05 to 58.32 in 2005-06 and 86.50 in 2006-07. The production of Vietnam went up from 3500 tonnes in 2000 to 1 lakh tonnes in 2005-06. Along with this there has been substantial import of pepper for the processing sector ranging from 13000-18000 tonnes annually which also resulted in depressing the prices.

However prices started rising in 2006 July mainly due to shortage in international availabilty. It reached as high as Rs 120 in september and has been hovering around Rs 110 for quite some times.

Falling pepper prices caused concern to growers and policymakers. The fall in prices and volumes have been attributed to enhanced in supply of pepper from countries like Vietnam which emerged as the major producer as well as exporter in a short period.

Average farm price of pepper in Kerala

The following bar chart shows the average farm price of pepper in Kerala during 2000-01 to 2006-07