(A) Pepper is a profitable crop only if it is grown on a large scale. - Nowhere mentioned in the argument.
(B) World consumption of pepper has been unusually high for three years. - The situation described in the question can happen even in case of normal consumption levels.
(C) World production of pepper will return to previous levels once normal weather returns. - Weather condition is not the only reason for lower pepper production.
(D) Surplus stocks of pepper have been reduced in the past three years. - "world production of pepper has been running well below worldwide sales for three years" indicates production < sales. If production is less than sales then the extra pepper is coming from the surplus stock. Since the surplus stock was used in past three years, it must have been reduced.
(E) The profits that the growers of pepper have made in the past three years have been unprecedented. - Not supported by the question.