Kerala sees black pepper prices soar past Rs 650/kg, cardamom crosses Rs 3,120/kg – here’s why
Kattappana: The demand for spices in the domestic market has led to a sharp rise in the prices of cardamom and black pepper, bringing a ray of hope to farmers in the high-range districts of Kerala. Although production remains low this season, cultivators hope the surge in prices will offer some relief from the ongoing crisis.
Farmers believe that if the current price trend persists, they may be able to recover the losses suffered over the past few years.
During the COVID-19 pandemic, a steep drop was observed in domestic demand, with the price of black pepper falling to around Rs 250–270 per kilogram. However, the current rate has climbed to Rs 660 per kilogram.
Farmers withdrew pepper cultivation after price drop
Cardamom prices are at their highest in four years, ranging between Rs 2,600 and Rs 3,200 per kilogram. However, concerns remain due to production being lower than expected. The dip in output is attributed to the partial withdrawal of many farmers from pepper cultivation after the price crash. This has contributed to the recent surge in prices of high-quality high-range pepper.
For the past month, cardamom has been fetching high prices in Idukki as well. In an e-auction conducted on Saturday by Greenhouse Cardamom Marketing India Pvt. Ltd., the highest bid reached Rs 3,120 per kilogram, while the average price stood at Rs 2,718. As a result, local markets are now offering up to Rs 2,750 per kilogram.
Stocked produce brings profit, low production remains a concern
During the price slump, many farmers held back from selling their produce, while traders stockpiled pepper at lower prices. Now, with the rise in demand, these traders are making significant profits.
According to Small-Scale Farmers’ Federation president Y.C. Stephen, though prices are high, both cardamom and pepper production remain low this season. Small farmers who had stored their produce are now reaping the benefits. This trend is especially beneficial to small-scale farmers. If cardamom prices remain steady until the Onam season, it could help farmers in the high ranges tide over the current financial distress.
Consistent pricing crucial for long-term benefit
Following the rise in market prices, farmers have undertaken only one harvest, which fortunately came at a time of favourable weather. Anitha Senthil Kumar, a farmer from Puliyanmala, said that while the current crop has brought good returns, consistent prices in the upcoming harvests are crucial for long-term benefit.