A sharp increase in Sri Lankan pepper exports to India has led to a notable drop in domestic pepper prices, putting pressure on Indian farmers and traders. According to The Hindu Business Line, pepper imports from Sri Lanka surged by a staggering 71% year-on-year, rising from 14,000 tonnes in 2023 to 24,000 tonnes in 2024–25.
The influx of cheaper Sri Lankan pepper has caused prices in India’s domestic markets to decline by Rs. 25 per kilogram in just two weeks. Currently, prices at the Kochi terminal market stand at Rs. 695/kg for ungarbled and Rs. 715/kg for garbled varieties—down from this year’s peak of Rs. 721/kg.
Traders reported that in the last fortnight, around 616 tonnes of pepper were traded. Meanwhile, Sri Lankan pepper is available in consuming markets at a more competitive rate of Rs. 675–690/kg, making it attractive to masala manufacturers who are now opting for the more affordable import to reduce input costs.
President of the Indian Pepper and Spice Trade Association, Kishore Shamji, confirmed that buyers are holding back on further purchases in anticipation of continued price declines. He also highlighted that farmers across key pepper-producing regions in Tamil Nadu, including Gudalur, Yercaud, and Namakkal, have begun releasing their stocks in response to the market pressure.
India’s pepper prices remain among the highest globally at $8,650 per tonne, while other key producers like Sri Lanka, Vietnam, Brazil, and Indonesia are selling at significantly lower rates, ranging between $7,000 and $7,500 per tonne. This price gap is making India a prime target for pepper exports from other producing nations.
With Sri Lanka’s harvest season expected to begin in June, there are concerns that increased arrivals could exert further downward pressure on Indian prices in the months ahead.