Several pepper growing sites mention info like this -
Peat pellets are okay for tomato seed and vegetable seed in general and a few types of pepper seed will germinate in them, but for some reason, most pepper seed will not germinate well, if at all in peat pellets, we suspect it is the pH in the peat, plus the fact that peat tends to stay soggy and holds too much moisture against the seed, literally drowning it.
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