Black pepper prices have been steadily increasing amid reports of harvest damage in Karnataka due to unseasonal rain. Besides pepper, there has been a dramatic increase in prices of staple vegetables like onions, tomatoes and more in the weeks leading up to the festive season.

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Prices of black pepper have increased by Rs 45-50 per kg in just the last week -- having increased by Rs 55-60 in the month of October -- and have touched Rs 460 per kilo. The garbled variety of black pepper is now being sold at Rs 485 per kg, and the high bulk density and low moisture varieties are also being sold at similar rates, reported Hindu Business Line.

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A confluence of events has been blamed for the increase in prices. As demand surged ahead of the festive season, the economic revival across various industries also contributed to the demand for black pepper. At the same time, unseasonal rain hit the harvest amid fears of floods and storms. Stocks and inventories have been exhausted over the past year. The disparity of demand and supply has led to a sudden increase in prices.

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Farmer organisations have said harvest for the coming year may be hit by over 50 percent, which has further driven up prices, as end-users stock up on available stocks. With prices increasing rapidly, imports of black pepper from Sri Lanka has been steadily increasing. Under the South Asian Free Trade Area, Sri Lanka imported 6,063 tonnes of black pepper during January-September 2021, compared to 2,343 tonnes in 2020 and 2,015 tonnes in 2019 during the same period.

Erratic weather has hit harvest-ready crops, that have seen increased prices as a result. Kharif crops like onions and tomatoes were particularly affected, as the increase in prices has only fuelled increased consumer inflation in recent weeks and months.

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(Edited by : Shoma Bhattacharjee)