The Hindu Business Line : Spot pepper slips on low buying

Prices of future deliveries on Saturday were Aug Rs 6,923 a quintal as against Rs 7,091 on August 9. Sep Rs 7,002 (Rs 7,226), Oct Rs 7,254 (Rs 7,433), Nov Rs 7,473(Rs 7,528), Dec Rs 7,375 (Rs 7,512) and Jan Rs 7,492 (Rs 7,632)

In the domestic market, there has not been much activity as the buyers are awaiting Sri Lankan pepper while the sellers are holding their produce for the Kerala Government to commence procurement. The Government, which has decided to procure pepper, has yet to fix the price and appoint an agency to do the procurement.

As a result, the arrivals at the terminal market has shrunk to just five tonne a week now, market sources told Business Line. Meanwhile, some of the exporters have shipped an estimated 200-300 tonnes of pepper from here "as unmarked MG 1" at $ 1,600 a tonne f.o.b, they said. This consignment might be MG 1, but had been shipped out against the stuff imported by them for re-export, they alleged.

In the international market also, the buyers are waiting for the prices to decline and hence the market is inactive, they said. Indonesia was offering at $1,450 a tonne while Brazil at $1,350 - $1,400 a tonne. Vietnam was offering 500GL and 550GL at $1,275 and $1,350 a tonne respectively. As the difference between the Indian parity and the prices of other origins is narrowing down to around $200 a tonne some buyers who prefer MG1 in certain pockets in Canada, Europe such as Italy, have shown interest, they said.

Meanwhile, Vietnam is allegedly penetrating in to these markets saying that the MG 1 they (buyers in Canada, Europe) import from India is of its origin as Vietnam pepper is imported in to India by international players having base in the country for processing such as sterilisation etc., and exported, they said.