Higher prices of the spice help offset lower returns from the bean
For coffee growers battling a drop in bean prices following weak global demand, the pepper that they grow as an inter-crop is coming to their rescue.
Of late, pepper prices have gained by at least 10 per cent on firm demand even as the harvest is in progress in the key producing regions of the Western Ghats.
According to the Spices Board, garbled pepper was quoted at ₹388 a kg on Tuesday against ₹380 on March 20 and ₹345.17 a month before that.
Globally, Indian pepper is quoted at a premium of $5,275 a tonne compared with the spice from other origins such as Brazil, Vietnam and Indonesia. Prices of other origins are ruling at $4,000 and below a tonne.
KK Vishwanath, Co-ordinator of the Consortium of Pepper Growers Organisation in Kodagu, said the Centre’s move to strictly implement the import norms is aiding the rise in domestic prices.
The Centre has taken several measures such as fixing a minimum import price of ₹500 a kg, including cost, insurance and freight.
While the pepper prices are higher by 10-12 per cent, coffee prices are trending lower to the same extent. The higher prices is helping those coffee growers, who also grow the spices crop meet their cash flow requirement, Vishwanath said.
Pepper is largely cultivated as an inter-crop with coffee and arecanut in parts of Karnataka, Kerala and Tamil Nadu, the main producers of the spices crop.
Demand for pepper continues to be firm in the short term, as end users such as masala manufacturers and ready-to-eat food producing firms have started procurement, said Kishor Shamji, general convenor, Indian Pepper Spice Traders Growers and Planters Consortium, Kerala chapter.
The commencement of wedding season in North India has also led to a demand revival. However, the local demand in Maharashtra has slowed down in the last fortnight following the re-imposition of Covid restrictions, Shamji said.
In Karnataka, the harvest is still going on though some regions in Kodagu and Chikkamagalur have faced the impact of erratic weather.
“The crop still being picked, will need to wait a bit before we get clearer assessment on the crop size. Lot of vines damaged last 3-4 years due to wilt and weather conditions,” said Jeffrey Rebello, Chairman of UPASI Coffee Committee. Pepper growers are also facing a major challenge in harvesting the crop due to acute shortage of skilled labour, said S Appadurai, Chairman, Karnataka Planters’ Association. Pepper crop is reported to be good in parts on North Kodagu, Hassan and Sakleshpur, he said.
Lower crop size
The plantation sector depends on migrant labour for the harvest. With States such as Tamil Nadu and Assam going for elections, the labourers have gone back to their native places to cast their votes, planters said.
On the crop size, Shamji said the Idukki farmers’ reports of a lower 2021 crop size has turned out to be prophetic as the sector is estimating a crop of 50,000-55,000 tonnes compared to 60,000-65,000 tonnes last year. Delayed rains in December coupled with strong winds in the growing regions in 2020 resulted in washing off and scattering of berries from pepper wines.
The delayed harvest — which started in December-January in Kerala’s Idukki, Kottayam, Pathanamthitta districts — was over. Normally, the harvest in these regions is carried out in November-December. The crop in Wayanad is also reported smaller, but the harvest is still on. In Karnataka, it started from mid-March.
But the Kerala pepper market missed the Sabarimala pilgrim season last year due to Covid restrictions. Normally, pepper sale during the season is between 3,000 and 5,000 tonnes, he said
source: http://www.thehindubusinessline.com / Business Line / Home> AgriBusiness / by V Sajeev Kumar / Bengaluru-Kochi / March 30th, 2021
