The Hindu Business Line : Downward trend continues in pepper

On an average 15-20 tonne were traded daily at the terminal market here during the week as MNCs covered spot pepper in good quantities to meet their pending commitments.

Besides, investors were buying spot and selling futures. And yet, the spot prices failed to move up, market sources said.

However, in the domestic market much of the demand is met by direct sales from the Coorg region. Pepper from Karnataka is delivered at the doorsteps of buyers in the north Indian markets at Rs 63 a kg, according to trading sources.

Selling pressure in Coorg region and selling at the local markets in Wayanad district in Kerala has brought down the prices, they said.

The prices per quintal quoted by various exchanges for MG 1- May delivery on Saturday were IPSTA Rs 6,096, NMCE Rs 6,070, NCDEX Rs 6,519 and MCX Rs 6,180. "What surprises us is the huge price difference for the same grade of pepper — MG 1 for the same month of delivery", the sources pointed out.

Demand from overseas markets was virtually nil except for some stray enquiries from selected pockets for MG 1. Indian parity remained at $1,500 a tonne as against Indonesia's $1,400 and Vietnam's $1,375-1,400 a tonne for ASTA grade, Mr Kishor Shamji, President, India Pepper and Spice Trade Association (IPSTA), said.

According to him, normally it is in April-May, demand used to pick up. But, it did not happen so far because of selling pressure in Karnataka and imports from other origins.

Spot prices on Saturday remained at Rs 100 below that of April 30 while futures also have shown a decline.

Spot MG 1 was sold at Rs 6,400 and un-garbled at Rs 6,000 a quintal on Saturday as against Rs 6,500 and Rs 6,100 a quintal respectively on April 30.

Futures prices on Saturday were May Rs 6,096 as against Rs 6,315, June Rs 6,717 (Rs 6,337), July Rs 5,953 (Rs 6,168), Aug Rs 6,665 (Rs 6,803), Sep Rs 6,759 (Rs 6,899) and Oct Rs 6,954 (Rs 7,098) a quintal.

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