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Pepper Demand Impacted by Scorching Heat

The spice's bulk demand has been hampered, prices have remained steady.

Chintu Das
Heat Wave
Heat Wave

Pepper demand has been impacted by the scorching heat in various North Indian consuming markets, with prices remaining stable for the previous 2-3 weeks with minor adjustments.

Ungarbled varieties now command prices of Rs 515-520 per kilogramme, whereas garbled varieties command prices of Rs 535-540.

Traders noted that demand in the upcountry consuming markets had slowed as purchasers chose to stay indoors for the most of the days to avoid being exposed to the heat. This has had an impact on industrial demand, causing masala makers to lower their pepper use.

With the commencement of summer rains, traders are anticipating a surge in demand. In addition, the start of wedding season following Akshaya Tritiya is projected to boost demand, they added.

However, traders are concerned about the growing number of Covid cases, which might harm business prospects.

Farmers are reluctant to release their available supply because of the low demand, according to Kishore Shamji, a pepper trader in Kochi. However, due to the unpredictable weather circumstances in these locations, the stock position of farmers in Karnataka and Kerala is similarly constrained. This year's harvest is expected to be weaker.

Shamji noted concerns about the rising availability of imported pepper mislabeled as scraps in numerous North Indian marketplaces. There are also instances of Brazilian pepper being available for Rs 510 in Delhi markets, he noted.

As per IMD reports, temperatures in North India may reach 50 degrees Celsius. According to news agency ANI, the top IMD scientist stated that "the average maximum temperature over northwest and central India in April was the highest in the past 122 years, with 35.90 degrees Celsius and 37.78 degrees Celsius respectively."

Due to the rising electricity use, numerous states in the country have experienced power outages this week due to a coal scarcity. The meteorological service also stated that a Low-Pressure Area might occur over the south Andaman Sea on May 5th.

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