The Hindu Business Line : Declining trend in pepper continues

Futures have also been declining. November delivery was Rs 6,027 on Wednesday against Rs 6,070 last Saturday, December Rs 6,055 (Rs 6,098), January Rs 6,108 (Rs 6,152), February Rs 6,178 (Rs 6,252), March Rs 6,247 (Rs 6,321) and April Rs 6,257 (Rs 6,383).

Unlike in the past, there was no good buying for Diwali. "Our expectation for Diwali has also failed," said a trader. The domestic demand is met by and large by pepper imported from Sri Lanka.

Add to this the propaganda that the country would have an increased production this year has forced buyers to wait and watch.

The harvesting has been delayed because of the rains. Farmers are also not enthusiastic to start plucking because of the low prices.

The production is projected at over 70,000 tonnes. The favourable weather conditions prevailing in the State are conducive for a better crop.

Besides, there has been a selling pressure in recent days as dealers and investors holding stock have started liquidating it so as escape from further losses. Many have, in fact, already burnt their fingers.

The State Government, which had announced some time back that it would procure pepper to arrest the fall in the prices, is yet to fix the procurement price and appoint an agency.

If it had fixed a procurement price, it would have stopped the prices from falling further, Mr Kishor Shamji, President, India Pepper and Spice Trade Association, told Business Line.

He said that it was high time the Government took urgent steps such as reduction in the purchase tax and doing away with the requirement of F Form and C Form for inter-State trade.

Such measures would help boost trade, as it would enable Indian pepper to compete with imported pepper in the upcountry market.