The Hindu Business Line : Pepper prices decline

Spot pepper has dropped by Rs 400 a quintal. MG 1 was sold at Rs 6,300 and ungarbled at Rs 6,000 a quaintal on Monday against Rs 6,700 and Rs 6,400 on October 1.

Futures prices have also fallen sharply during the period. Oct delivery was quoted at Rs 6,186 as against Rs 6,531 on October 1. Nov ruled at Rs 6,383 (Rs 6,579), Dec Rs 6,384 (Rs 6,662), Jan Rs 6,493 (Rs 6,777), Feb Rs 6,601 (Rs 6,927) and Mar Rs 6,628 (Rs 6,955) a quintal.

The market has reacted adversely to the excessive speculation at low level of margin leading to the sharp fall, Mr Kishor Shamji, President, India Pepper and Spice Trade Association (IPSTA), told Business Line. He said speculators were liquidating futures and buying ready, while investors were selling ready and buying futures in the exchanges. This phenomenon, coupled with the premium from the imported pepper, has hit the market, he said. The situation warrants activation of the market regulator.

International prices were ruling steady without much activity, he said. Brazil was offering at $1,225 a tonne, Indonesia and India at $1,425 while Vietnam ASTA grade at $1,320 a tonne. Farm gate prices for Vietnam pepper were $1,225 (550 GL) and $1,125 (500 GL) a tonne.

The upcountry demand is met by imported pepper from Sri Lanka now available at $1,375-1,400 a tonne and direct buying from the primary market here. As a result, the arrivals at the terminal market have dropped to 5 to 7 tonne a week, he added.