Strong domestic demand during the festival season has pushed up black pepper prices, with an average price increase of ₹16 per kg in the last three weeks.

Traders attributed the increase to inter-State dealers covering their raw material requirements to meet commitments to the industry under time-bound forward contracts. The industry was also forced to procure available stocks to meet demand ahead of the festival season and Deepavali, pushing prices higher.

The price increase stood at ₹8 per kg this week, against ₹3 per kg in the previous week and ₹5 per kg the week before that, with the total increase rising to ₹16 per kg, they said. At the Kochi terminal market, ungarbled 550 GL farm-grade pepper on Wednesday was quoted at ₹720 per kg, while garbled pepper was priced at ₹740 per kg against an offered quantity of 36 tonnes.

Kishore Shamji of the Indian Pepper and Spices Trade Association said the daily rise in prices has prompted sellers to hold back stocks in anticipation of better realisations, slowing supplies to the domestic market.

Imports from Sri Lanka are also rising, supplementing domestic supplies to meet demand. Import prices are moving in line with the domestic market, enabling upcountry buyers to cover their requirements, he said.

With the Indonesian crop entering the harvest season, followed by Brazil towards the end of October, the Indian market is likely to see an influx of imported pepper.

Brazil is offering pepper at below $6,000 a tonne, undercutting Vietnamese prices, which are around $6,000 a tonne. Indonesian pepper is quoted at $6,500 a tonne and Sri Lankan pepper at $6,800, while Indian pepper is priced at a parity of $7,825 a tonne.

Given the relatively high prices of Indian pepper, producing countries are eyeing the Indian market to capitalise on the price advantage, supported by strong domestic consumption and declining production, Shamji said.

The further movement in prices will depend largely on the pace of domestic buying and demand in the run-up to Deepavali, he added.

Published on October 21, 2026