The Hindu Business Line : Pepper prices turn hot

Spot prices on Tuesday moved up by Rs 100 a quintal. MG 1 was sold at Rs 7,600 and un-garbled at Rs 7,300 a quintal against Rs 7,500 and Rs 7,200 respectively during the weekend.

The futures prices also witnessed an increase. May delivery was at Rs 7,768 against Rs 7,630 on May 8; June Rs 7,962 (7,820), July Rs 8,129 (Rs 8,012); August Rs 8,400 (Rs 8,279); September Rs 8,534 (Rs 8,439); and October Rs 8,746 (Rs 8,649) a quintal.

Market was active with good buying support from domestic buyers. Some of the exporters are also showing interest to buy. However, there was no selling pressure, as those holding stock are not interested. They anticipate that the prices would go up if a non-NDA Government came to power at the Centre. According to them, such a Government would bring in changes in the Exim Policy and stop importing of pepper.

On the other hand, good pre-monsoon showers and an expected timely southwest monsoon might push up the demand in the coming weeks.

Besides, the grinding units have accelerated their activities before the onset of the monsoon. This has led to an increase in the demand, according to market sources.

However, the international players were just waiting and watching for the prices to fall. They were anticipating that Vietnam, which is reluctant to sell now, would liquidate its stock in the coming weeks and that would push the prices down, said Mr Kishor Shamji, President, India Pepper and Spice Trade Association (IPSTA).

International pepper market was also steady without much change in the prices. In fact, "Brazil is silent on nearby and new crop positions," he said.

At present, Vietnam was offering ASTA quality pepper at $1,500 a tonne f.o.b., while its inferior quality is available at $1,350 a tonne. Brazil was offering at $1,450-$1,475 a tonne, and Indonesia at $1,450-$ 1,500 a tonne.