The Hindu Business Line : Move to cut import duty pushes down pepper

Kochi, Dec. 5 Pepper futures market on Wednesday fell following the Centre’s reported decision to reduce import duty on pepper to 50 per cent from 70 per cent, which has created a panic like situation among the traders.

Add to this reports from overseas said that Indonesia had reduced its prices.

On the reduction of import duty the trading sources here told Business Line that it won’t make any impact now but there could be a possibility of Vietnam pepper coming to India in large quantity when the harvesting takes place there early next year. Therefore, they said, it was essential for the government to fix tariff value for the commodity in the similar way the government had done in the case of poppy seed recently. Besides, the imports should be monitored and restricted through selected ports, they added.

Indian parity on Wednesday dropped to $3,650 a tonne (c&f) but still continued to remain out priced, they said.

Indonesia reported to have reduced the prices of L Asta to $3,300 a tonne (c&f) from $3,450 a tonne (c&f) on Tuesday.

B Asta was quoted at $3,150 a tonne (f.o.b.).

CONTRACT POSITION

December contract on NCDEX on Wednesday dropped by Rs 228 a quintal to Rs 13,265.

The fall in other contracts was from Rs 226 to Rs 299 a quintal.

On NMCE, December contract dropped by Rs 225 a quintal to Rs 13,220. The fall in other contracts was from Rs 183 to Rs 325 a quintal.

Turnover up

Total turnover on NCDEX moved up by 400 tonnes to 11,697 tonnes, while that for December went up by 14 per cent. January turnover, however, dropped by 76 per cent.

On NMCE, total turnover moved up by 36 tonnes to 1,382 tonnes.

Open interest

Total open interest on NCDEX dropped by 428 tonnes to 19,339 tonnes.

December and January position declined by 26 per cent and 52 per cent while February moved up by 11 per cent.

On NMCE, total open interested went up by 42 tonnes to 1,604 tonnes.

Spot prices

Spot prices in tandem with the futures market trend fell by Rs 200 a quintal on Wednesday to close at Rs 12,800 (un-garbled) and Rs 13,400 (MG 1).

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