The Hindu Business Line : Pepper prices drop on selling pressure

Futures were Rs 7,579 for June against Rs 7,657 on May 22, July Rs 7,920 (Rs 8,000), August Rs 8,184 (Rs 8,267), September Rs 8,345 (Rs 8,464), October Rs 8,518 (Rs 8,640) and November Rs 8,600 (Rs 8,733).

There was limited buying activity as most of the buyers are in the wait-and-watch mode.

However, there was some buying support from exporters who wanted to fulfil their May and June commitments. This restricted the fall to Rs 100.

Because of the school reopening on June 1, the growers are selling in Idukki and Wayanad districts and it is expected to continue for a couple of weeks.

This has resulted in an increase in the arrivals at the terminal marketto 5-6 tonnes a day.

Vietnam pepper could arrive in the Indian markets as Sri Lankan origin ones because of the existing facility to import duty-free from the island nation.

Even copper and Italian marble were being imported to India under this facility despite the fact that these items are not produced in that country.

Though import of copper has stopped, marble is still said to be arriving in the country duty-free as a product of Sri Lanka, Mr Kishor Shamji, President, India Pepper and Spice Trade Association, told Business Line.

"International demand is sluggish. There is no buying activity as the international players are waiting for the prices to drop," Mr Shamji said.

Currently, the prices of all the origins remain unchanged. Indian pepper continues to remain outpriced at $1,750 a tonne. Vietnam is offering at $1,350-1,400, Indonesia and Brazil at $1,500 and Malaysia $1,600 a tonne.