E-spot trading in black pepper soon, Spices Board may act as regulator

KOCHI: The India Pepper and Spice Trade Association (IPSTA), the oldest association of pepper traders in the country, is planning to launch e-spot trading of black pepper, bringing together farmers and traders on its platform for better price realisation of the commodity.

Anand Kishor Kuruwa, the newly-elect president of IPSTA, said the association is currently holding discussions with vendors (software companies) who are looking for a tie-up in setting up e-trade software. "After cardamom, pepper will be the second commodity among the cash crops of Kerala to enter the ambit of e spot trade/e-auction trade," he said.

The association, which was instrumental in bringing about the price discovery mechanism for black pepper the world over when it ran futures trade for black pepper for about six decades, is also in discussions with the Spices Board for acting as a regulator for the e-spot market for pepper, said Kuruwa. "The expertise of IPSTA will be handy as this association has an impeccable record of running futures trade for black pepper right from 1957 to 2016. The platform of futures trade will give way to spot trading which will be run on a pan India basis as per the current situation," he said.

On this platform, farmers can be assured of better returns and prices while buyers from destination markets will also participate in the pursuit of better quality and competitive prices. "The benefits of such a platform will be multifold as it will ensure a clean, transparent system of trade. The members of the association can participate in this and return back to the trading days for black pepper from west Kochi," said Kuruwa.

India's pepper production is estimated at 65,000 tonnes in 2020-21, up from 61,000 tonnes in 2019-20. Karnataka is the biggest producer of the commodity at 36,000 tonnes, followed by Kerala at 22,000 tonnes. Tamil Nadu is a distant third at 1,750 tonnes.