Bengaluru Bengaluru: India’s pepper industry is set for an upheaval in 2025, as prices have hit new heights due to a fall in production and supply shortages, leading to a challenging scenario for farmers and traders.
Vietnam, Brazil, Indonesia and India account for 80% of global pepper production and 95% of global trade. In 2024, India will account for 11% of global pepper production, with Karnataka contributing 60%, Kerala 30% and the remaining 10% coming from Tamil Nadu and other regions.
The global pepper market remained volatile in 2024, with prices rising from Rs 328 per kg in January to Rs 614 per kg in June, before falling to Rs 512 per kg by December. According to industry experts – the price may cross Rs 1000 this year.
Pepper production in India has seen a significant decline due to erratic weather patterns. Unseasonal rains in 2024 and the cascading effects of climate change have adversely affected crop yields, leading to a sharp decline in overall production volumes. India is projected to produce 46,000 metric tonnes of pepper in 2025, down sharply from 55,000 metric tonnes in 2024.
This supply shortage is not limited to India. Other major pepper producing countries, including Vietnam and Sri Lanka, have also reported lower yields, further exacerbating the global supply shortage. Vietnam’s pepper production will decline from 192,000 metric tonnes in 2023 to 183,000 metric tonnes in 2024 and 178,000 metric tonnes in 2025. Brazil’s pepper production will decline from 102,000 metric tons in 2023 to 70,000 metric tons in 2024, but will increase to 85,000 metric tons in 2025. Additionally, Sri Lanka’s pepper production will decline from 20,000 metric tons in 2024 to 14,000 metric tons in 2025. Due to the decrease in domestic production, India may have to export pepper to Sri Lanka this year to meet its demand.
