The Hindu Business Line : Slight improvement in pepper prices

Futures also have shown some upward trend. July delivery was Rs 7,654 quintal on Tuesday as against Rs 7,479 on June 19. Aug Rs 7,908 (Rs 7,726), Sep Rs 8,017 (Rs 7,882), Oct Rs 8,169 (Rs 8,033), Nov Rs 8,190 (Rs 8,073) and Dec Rs 8,227 (Rs 8,099).

Exporters were buying for their June shipments. Besides, some of the overseas buyers who prefer MG 1 were also buying. However, this is not a regular phenomenon and it is only a technical arrangement, Mr Kishor Shamji, President, India Pepper and Spice Trade Association, told Business Line.

He said in the international market, the players who were waiting for Vietnam to release pepper in large quantity had also started buying to meet their immediate commitments. But, they were not interested in building inventory, he said.

According to him Vietnam, which had started converting black pepper into white was also not releasing its stock at the expected levels. Indonesia had reduced its price to $1,375 a tonne. The new crop there also started arriving while the Brazilian crop was expected in September. The Indian parity still remained at $1,675 a tonne.

Domestic demand was also expected to pick up following the recent monsoon showers in northern India. However, much of the demand was met by direct sales from Kerala's Wayanad district, he said.

The selling pressure, which was existent during the first week of June, had now subsided, he said.