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| Image By: Pratiksha Mohanty on Unsplash |
Pepper growers are concerned about an increase in the availability of Sri Lankan crops on the market, which has lowered domestic prices.
Over the previous week, the price has dropped nearly 5 per kg, prompting the consuming industry to purchase more imported goods to meet demand ahead of the next festival season.
Stranded at the harbour
They attributed the rise in arrivals to the Department of Revenue Intelligence's release of a held-up stock of roughly 500 tonnes of Sri Lankan black pepper at the Tuticorin Port in April-May. Following a court ruling, this shipment was released to commodity importers, and this pepper is currently accessible in the market for $405 per kg.
The price of Indian pepper is now hovering at $390-395. The product is shipped to North Indian markets for $425, including GST and freight.
Growers claim that the local market, both the production and consuming centres, is currently swamped by Sri Lankan pepper. Due to the festival boom, there is a high demand for commodity.
Stocks for export are plentiful
Sri Lankan production is projected to be good this year, according to Kishore Shamji, a pepper dealer in Kochi. Furthermore, according to a declaration made to the International Pepper Community, that country had a carrying stock of 12,000 tonnes last year, with domestic consumption of 12,000 tonnes. As a result, the quantity of commodity available for export was 25,000 tonnes.
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The island nation's exporters have been compelled to offer the commodities for $4,000 a tonne, down from $4,300 last week due to the weakening of the Sri Lankan rupee. According to Shamji, Indian production is projected to be 60-65,000 tonnes. The season is done, and farmers are flocking to the market to sell their produce.
With the arrival of a new crop in India early next year, according to a spokeswoman for the All India Spices Exporters Forum, there is a prospect of additional pepper availability in the coming months. As a result, the market may become easier as arrivals increase. The degree of demand in the next months will determine a lot.
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