• 71% increase in Sri Lankan pepper imports causes Rs. 25/kg price drop in India
• Indian farmers face pressure as cheaper Sri Lankan pepper attracts masala manufacturers

Sri Lanka’s pepper exports to India have hit the Indian domestic prices affecting the Indian pepper farmers as Sri Lankan pepper exports to India surge by 71%.

According to The Hindu Business Line, rising imports of Sri Lankan pepper have hit the prices of the commodity in the domestic market, witnessing a 25 Indian rupee (Rs. 88) per kilogramme drop in the last fortnight.

Traders told Business Line that prices in the Kochi terminal market are ruling at 695 Indian rupees (Rs. 2,460) for ungarbled and 715 Indian rupees (Rs. 2,530) for garbled varieties after reaching a high price of 721 Indian rupees (Rs. 2,550) this year.

The report said that the traded quantities in the past two weeks were 616 tonnes. At the same time, Sri Lankan pepper is available in the consuming markets at 675-690 Indian rupees (Rs. 2,390-2,440).

They pointed out that masala manufacturers are showing interest in cheap Sri Lankan raw material to meet their production requirements.

Indian Pepper and Spice Trade Association President Kishore Shamji told Business Line that the buyers are holding back their purchase in view of the declining prices. Farmers in all centres in Tamil Nadu including Gudalur, Yercaud, Namakkal started releasing their stocks.

Indian pepper prices are ruling on the higher side overseas at $ 8,650 per tonne compared to $ 7,200 of Sri Lanka, Vietnam ($ 7,100), Brazil ($ 7,000), and Indonesia ($ 7,500). The Indian prices are on the higher side, major producing countries are eyeing India to dump their produce.

Quoting figures, Shamji said Sri Lankan imports into India in 2023 were 14,000 tonnes, while the figure reached 24,000 tonnes during 2024-25, a 71% increase year-on-year.

It is feared that the start of harvest in Sri Lanka by June is expected to increase pepper arrivals to India further from that country.