Pepper prices which had reached a ‘life time high’ in the recent past, have started falling drastically amid reports of a bumper harvest this year in Kodagu.
The price of pepper which was ruling around Rs 750 a kg sometime ago, continued to slip on Monday on bearish sentiments and reports of selling pressure.
According to a report, on the spot, neither there was any arrival nor any off-take. Market sources said the end-users have slowed buying anticipating that 50 tonnes of pepper held in the warehouses would be released. This coupled with reports that the Kodagu crop would be double this year and forward sales for March have been made at ₹525, have pulled the market down. However, on the IPSTA platform all the three active contracts remained unchanged. Spot prices fell by ₹300 a quintal to ₹67,700 (ungarbled) and ₹70,700 (garbled). Export prices were $11,825 a tonne c&f Europe while for the US it was $12,125.
The prices had shot up last year following heavy rains and wilt disease, leading to a drop in production in this arrival season (March-April).