Global pepper prices may fall five per cent in the coming weeks on increased supply. Indonesia and Brazil, the two leading producers, have ample stock for the coming months to meet the demand from major consumers like the US and the EU.
So, experts believe the market will be in a bearish mode for the next six-seven weeks with no shortage in the market.
Indonesia, the top producer, is currently offering the Asta grade variety for $4,050 a tonne. The country has a stock of 65,000 tonnes, with a carryforward stock of 30,000 tonnes. It has shipped 31,700 tonnes in the last nine months.
In Brazil, the total production for the season is estimated at 28,000 tonnes and the fresh stock has already arrived in the markets. The overall stock in the country is estimated at 50,000 tonnes with a carryforward stock of 12,000 tonnes.
