The Hindu Business Line : Pepper stays steady

Futures maintained their upward trend. Prices quoted for the January contract were Rs 7,585 as against Rs 7,398 on January 3. Feb Rs 7,460 (Rs 7,276), March Rs 7,583 (Rs 7,422), Apr Rs 7,710 (Rs 7,547), May Rs 7,637(Rs 7,476) and June Rs 8,155 (Rs 7,979) a quintal.

Following the announcement that the Kerala Government would procure pepper at Rs 75 a kg, there has been hectic buying by upcountry dealers. Lot of investors were also seen active in the trade, according to Mr Kishor Shamji, President, India Pepper and Spice Trade Association (IPSTA).

Added to this, the Sabarimala pilgrims are also buying pepper from the local market on their way back. It is estimated that 500 tonnes of pepper is thus traded during the pilgrimage season from November 16 to January 15. This has led to a drop in arrivals in recent weeks. Current arrivals at the terminal market were about 100 tonnes a week, he said.

He said much of the upcountry demand was met by direct buying from primary markets and it was transported to North Indian destinations evading tax.

Sri Lanka has been quoting $1,550 a tonne and at this rate pepper from the Island would be available here in the market Rs 68 a kg. Sri Lankan pepper is expected to arrive from mid-January.

As the Indian price is ruling high, there is virtually no demand from overseas. ``Our parity is at $1,700 a tonne as against the Indonesian price of $1,400 and $1,350 a tonne quoted by Brazil,'' he said.

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