The Hindu Business Line : Pepper prices up on talk of cap on Lanka imports

Spot prices for MG 1 (garbled) and Un-garbled last Saturday were Rs 6,950 and Rs 6,550 respectively a quintal against Rs 6,800 and Rs 6,400 a quintal respectively on February 2.Futures prices, which had shown marginal improvement, were February Rs 6,998, March Rs 7,218, April Rs 7,429 May Rs 7,402, June Rs 7,740 and July Rs 7,810.

Sellers in the exchanges were bullish anticipating further increase in the prices. "We are already higher by Rs 10 a kg," Mr Mahendra Parekh, President, India Pepper and Spice Trade Association (IPSTA), told Business Line.

Even though the harvesting has begun the arrivals have not picked up. It seems that the farmers as well as the traders in the primary markets are holding back the stock, he said. There is not much selling pressure.

The good prices for rubber and coffee seem to have persuaded the growers to hold back their pepper, which could, if properly dried, be stocked for even 20 years, he said.

There is uncertainty in the supply position. "We are without any direction. We know that our crop is delayed," he said, adding that normally it should have started arriving in the market by December-end.

February delivery is nearing maturity and 4,000 tonnes of black pepper are pending in one exchange alone. According to him, an estimated 13,000-14,000 tonnes of pepper are lying in the hedge in all the exchanges.

According to trading sources, the domestic demand is good, but it is met by supplies from the primary markets in Karnataka and Kerala's Wayanad district.

The arrivals have dropped to 5 tonnes a day now against 15-20 tonnes a day in the previous year period.

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