KOCHI: If things go well, traders in some of the big pepper-producing countries including India can directly buy and sell black pepper through the online app-based e-commerce platform developed by Kochi-headquartered India Pepper and Spice Trade Association (IPSTA).
A delegation of the International Pepper Community (IPC), an intergovernmental organisation of pepper-producing countries, who were in India ahead of the Community's next session in Sri Lanka in November, has evinced keen interest to develop a similar app among the member countries during its interaction with IPSTA members here.
The IPC consists of India, Indonesia, Malaysia, Sri Lanka and Vietnam as permanent members and Papua New Guinea, Philippines as an associate member. "The IPC delegation has asked us to showcase this app at the Sri Lanka meet in November," said IPSTA consulting secretary Rajesh S Chande. He said IPSTA will help the member countries to develop this app, and each country will have their own app, and it could be interlinked in the future.
"We started conducting online trading through this app from May this year, after going through field trials for several months," Chande said, adding that this app can be linked so that traders can directly buy and sell black pepper from one country to another. "For dollar-denominated contracts, we obviously require the approval from the respective governments and other regulatory permissions. If permitted, a trader in India can buy pepper directly from Vietnam using the app," Chande explained.
The IPC delegation during their visit to India also visited the Spices Board headquarters in Kochi. The IPSTA Pepper Trade app which is available on Google Play and Apple Store, is used for trading black pepper on the IPSTA Exchange, which is India's oldest commodity exchange and the first recognised regional commodity exchange for black pepper in the world.
"The concept of spot pepper trading through an online mechanism was explained to the delegation, which was enthusiastic to know more about the same and was interested in implementing a similar spot trading of Pepper online with the help of IPSTA and is likely to seek permission from their respective Governments to venture for it.
Since it is a good price discovery system of the spot market of pepper and various grades are acceptable within the parameters prescribed duly approved by an independent assayer (Testing Agency), the trading has been launched and commenced," according to a release here.
Earlier, road shows were conducted in Wayanad as well as in the Coorg area where the local farmers, planters, and interstate dealers showed interest and are becoming trading members to participate in the spot trading.
So far 46 members have registered onboard to participate in the trading and it is expected and anticipated that once the market stabilises with the initial teething problems that are already solved, the trading could pick up faster by which time the fourth roadshow programme in Idukki district will be completed before the onset of Onam festival.