Tips for trading Pepper

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Pepper is most of the most traded spices in markets in today’s date. India is the second most producer of Pepper only after Vietnam. India was the leader in the production of pepper till the 1990’s. But after the year 2000, Vietnam has taken over the leader ship from the country India. This has also resulted in the decrease of the pepper prices as Vietnam entered the world market with a high yield of pepper.

In India, Kerala is the largest producer of pepper comprising to about 90% of the total production. It is also said that there is a lot of difference in the quality of pepper produced when compared to the pepper produced in other markets across the globe.

The pepper August delivery saw a decline of Rs. 216 and closed at Rs.28992 per quintal. This happens due to lower demand in exports and also the decline of prices overseas. This also happened due to the high yield from Vietnam and the competitive prices given by Vietnam. The pepper prices have known to decline from Rs.200 per kg to Rs. 65 per kg after the year 2000.

It is estimated that the pepper prices will remain low even in the next few trading sessions. This is due to the fact that the prices are lower in overseas market than in the domestic market.

To know more about pepper, it is a fruit like berry and is also known as black gold. It is a spice which comes from the plant Piper Nigrum. The flowers of this plant are white in color with dark green leaves. The ripe berries are dried in the sun to make them black pepper. Pepper is usually grown in places where there is tropical and sunny climate. Pepper is one of the oldest spices dating back to 4000 years old. It is used in preparation of food and also used for various medical purposes.

The countries which are major producers of pepper are Vietnam, Indonesia, Brazil, Malaysia and India. Vietnam is known to produce 85000 tons of pepper annually followed by Indonesia with 67000 tons. India is known to produce 65000 tons annually, Brazil with 35000 tons, Malaysia with 22000 tons and Sri Lanka with 12750 tons.

India is into the production of pepper from many decades. Kerala is one of the biggest producers of pepper. The states where pepper is cultivated are Maharashtra, Goa, Madhya Pradesh, Andhra Pradesh, West Bengal, Orissa, Assam, Tripura, Meghalaya, Arunachal Pradesh, Mizoram, Nagaland, Manipur, Pondicherry and Andaman and Nicobar Islands.

As per the recent trade news, the Pepper prices have shot up by 16% in the last month. This is because of the concern about low availability of pepper for the rest of the year. The production has been less than expected in India and also the worlds leading pepper producer, Vietnam is not active in the market. Hence the price of the spice which was around Rs.223 in the month of March has shot up to Rs.258 per Kg by the end of April.