Due to COVID-19 outbreak,Global pepper market is dull with no demand seen in the past two weeks.Corona virus impacts pepper prices in Europe and the US, bringing down by 6-8 % in 2020. This could fall further with COVID-19 as it spreads to key markets of the US and Europe.
“There is an extreme fear in the market and our regular buyers are in the wait and watch mode. Suppliers of spices in the US market fear a drop in demand if the disease spreads to more cities and people. Prices could drop further if the situation continues like this,” – said Jojan Malayil, chief executive officer of Kochi-based Bafna Enterprises.
Prices of all spices have declined 8-10% and arrival of the new crop in pepper has added to the pressure. There is a slight slowdown in demand from China and Italy reports says.
India is the largest consumer of pepper in the world and the second largest producer after Vietnam. Traders believe that a revival in Chinese demand could help support pepper prices to a certain extent in the short run.