The Hindu Business Line : Pepper prices slip further

PEPPER prices continued its downward trend here for want of demand, as the international buyers are quiet and waiting for the Vietnamese pepper to arrive in the world market.

Vietnam was offering 500 GL at $1,200 and 550 GL at $1,250 per tonne. Indonesia was quoted $1,350-$1,375, while Brazil was offering at $1,375-$1,400, but not freely selling, they said.

Added to this, the weak US dollar against the rupee is influencing the market upward, Mr Kishor Shamji, President, India Pepper and Spice Trade Association told Business Line. He said that there was good domestic demand. But, it is being met now by direct buying from the primary markets and transporting it to upcountry markets by evading tax at both ends. Spot prices fell by Rs 100 a quintal on Friday. MG 1 was sold at Rs 7,200 per quintal, while un-garbled was at Rs 6,900.

The futures also continued to decline. Prices quoted were February Rs 7,082 against Rs 7,305 on February 7; March Rs 7,310 (Rs 7,530); April Rs 7,462 (Rs 7,666); May Rs 7,651 (Rs 7,807); June Rs 7,785 (Rs 7,935); and July Rs 8,183(Rs 8,341) per quintal.

Meanwhile, the International Pepper Community has said that the world pepper production has dropped to 3,27,250 tonnes in 2003 from 3,41,300 tonnes in 2002, while the exports fell to 2,29,096 tonne.

India, Brazil and Malaysia reported significant reductions in output, while production in Vietnam and China increased, resulting in an overall decline of 41,050 tonne, it said.