The Hindu Business Line : Pepper prices move up

PEPPER prices have shown an upward trend following the announcement that the Union Commerce Ministry would stop import of pepper using the advance licences issued before the facility was withdrawn few months back.

Spot prices of MG 1 and un-garbled have moved up by Rs 200 a quintal to Rs 6,500 and Rs 6,100 from Rs 6,300 and Rs 5,900 a quintal last Monday.

Besides, rumours that the Union Government had approved a proposal to extend export subsidy at Rs 16 a kg had also contributed to the upward swing, market sources here told Business Line. The proposed assistance is aimed at facilitating export of around 4,800 tonne of pepper procured by the Kerala State Government Agency, Kerala Cooperative Marketing Federation (Marketfed), as a market intervention exercise at Rs 75 a kg in recent months.

The Futures prices had also moved up. The prices quoted on Saturday were May Rs 6,361 as against Rs 6,096 on May 07. June Rs 6,382 (Rs 6,117), Jul Rs 6,212 (Rs 5,953), Aug Rs 7,089 (Rs 6,665), Sep Rs 7,189 (Rs 6,759) and Oct Rs 7,397 (Rs 6,954). However, domestic demand continued to remain weak as heavy sales were taking place in the Coorg region at delivery price of Rs 61.50 - Rs 62.50 a kg, anywhere in India, they said. An estimated 100-125 tonnes of black pepper had been sold at this price during the week from there. It was believed that once VAT was introduced tax evasion would come to an end. But, it does not seem to have happened in Karnataka, they alleged.

There has not been any demand from overseas as the international players are waiting for the prices to fall. There has been a propaganda campaign of late in the world market that the prices would drop to around Rs 50 a kg. However, Indian parity has gone up to $1,550 on Saturday from $1,500.

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