The Hindu Business Line : Pepper prices rule steady on correction

The futures prices on Tuesday were: May Rs 7,702 a quintal as against Rs 7,720 on April 17; June Rs 8,046 (Rs 8,065); July Rs 8,382 (Rs 8,394); August Rs 8,489 (Rs 8,501); September Rs 8,623 (Rs 8,701) and October Rs 8,797 (Rs 8,900).

Attributing the change in the market to correction after the continuous decline in prices in recent days, trading sources told Business Line that investors had now shown interest in buying ready and futures. They were selling futures and buying spot immediately to get the premium difference, which gives them good return on investment, the sources said. Besides, because of the low prices the sellers were holding back.

The arrivals at the terminal market had shrunk to an average five tonnes a week currently. The upcountry demand is met by direct shipment from the primary markets.

There is virtually no demand from overseas. Those who had made commitments earlier were buying little quantity. In fact, the main exporters of late are those importing for re-export.

In the international market "we continue to remain out-priced", Mr Kishor Shamji, President, India Pepper and Spice Trade Association, said. He said as against the Indian parity of $1,650-$1,700, Vietnam was offering at $1,250-$1,300 a tonne. Indonesia and Brazil were offering at $1,400 - $1,450 while Malaysia at $1,450 - $1,500 a tonne.

He also pointed out that the terminal market was losing its significance following the emergence of Internet-based online trading. It facilitated the operators to buy and sell instantly, he added.