The Hindu Business Line : Pepper prices decline on selling pressure

PEPPER prices both spot and futures started declining on selling pressure following summer showers in the growing areas coupled with apprehension of dumping of domestic market with imported pepper.

The spot prices on Wednesday were MG 1 Rs 7,900 and ungarbled Rs 7,600 a quintal, down by Rs 300 from that of on March 31. The futures prices were April Rs 7,999 as against Rs 8,337 on March 31 last, May Rs 8,187 (Rs 8,533), June Rs 8,540 (Rs 8,939), July Rs 8,776 (Rs 9,187) August Rs 8,888 (Rs 9,305) and September Rs 9,130 (Rs 9,535)

Bull sentiments prevailing in recent weeks had pushed the prices up and when the summer showers came the people started liquidating. As a result the prices had now started declining, market sources told Business Line. The speculators were on a buying spree without looking at the international scenario and the imports from Vietnam and Sri Lanka.

Imports from Vietnam have already started.

There is good domestic demand and it is met by supply from Karnataka and Tamil Nadu. The berries from these regions look good though the bulk density is less unlike the MG 1, which has a bulk density of 575 - 600 g per litre.

In the international market Indian pepper is out-priced. Buying is mainly concentrated in Vietnam. The Indian parity is still at $1,800-$1,850 a tonne f.o.b as against Vietnam's $1,250 for GL 500 and $1,350 for GL 550. Brazil and Indonesia were offering at $1,400 and $1,425 a tonne respectively, they said.

Arrivals in Vietnam had increased in recent weeks. However, the prices have not dropped so far. Besides, the weak dollar has led to market stabilisation, they said.