The Hindu Business Line : Pepper rules steady

However, compared to the weekend, the futures showed a marginal decline on selling pressure. The prices quoted on Tuesday were July Rs 7,607 as against last Saturday's Rs 7,652, Aug Rs 7,860 (Rs 7,907), Sep Rs 8,033 (Rs 8,080), Oct Rs 8,186 (Rs 8,227), Nov Rs 8,227 (Rs 8,234) and Dec Rs 8,220 (Rs 8,260).

The international market remained firm on some buying and selling activity. However, in Indonesia, despite the reported overall production fall of 50 per cent, it was quoting low at $1,375 a tonne. This had a bearing on the futures prices.

Sri Lanka has also drastically reduced its price to $1,450 a tonne. In fact, it has been selling at over $2,000 a tonne in April-May 2004 to the oleoresin industry. Having sold immature pepper at this rate, they can now afford to sell matured pepper at this level and even below, market sources pointed out. Sri Lankan harvesting is almost halfway through while in Indonesia it has just started. Malaysia seems to have sold out its crop. In Brazil, harvesting might commence in Oct/Nov, they said.

Lowering of price by Sri Lanka would lead to the North Indian buyers procure from the Island nation, as it would help them save sales tax. On the other hand, the price would also be less than that of the domestic market.

Meanwhile, hectic buying activity was there in the primary markets where large quantity of pepper is taken out without paying taxes. Last week, 150 tonnes of pepper were sent out from Wayanadu, while 50 tonnes left Idukki for Tamil Nadu.

As a result, most of the upcountry traders were buying from these places by paying a rupee more than the terminal market price, Mr Kishor Shamji, President, India Pepper and Spice Trade Association (IPSTA) alleged.

heavily on revenue collection, he added.