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G.K. Nair

Kochi, Sept. 29 Pepper futures market moved up marginally on Monday on bullish sentiments. October contract went up by Rs 51 a quintal to Rs 13,604, while November and December contracts were up by Rs 53 and Rs 47 a quintal respectively.

Total turnover on NCDEX increased by 2,772 tonnes to 6,515 tonnes. Total open interest declined by 44 tonnes to 18,278 tonnes. October position dropped by 229 tonnes to 7,189 tonnes, while November and December positions moved up by 123 tonnes and 49 tonnes respectively.

Due to weakening of the rupee against dollar, the Indian parity remained at $3,175 a tonne (c&f) Europe and $3,300 a tonne (c&f) US. Prices in other origins are reportedly firm and the current levels Indian pepper is competitive. But the problem was non-availability of the material, market sources pointed out.

However, covering from the exchange is difficult.

At the same time, no spot material available. In fact, “hedging will be difficult given the restrictions in force and as a result genuine hedgers will be asked to liquidate,” they alleged.

The rule is that one member or broker should not have more than 15 per cent of the total outstanding position, all the six positions together, or 1,000 tonnes whichever is higher to his account. This restriction on nearby month position is negatively affecting the exporters and hence, the regulator should look into this issue, Mr Kishor Shamji, President, India Pepper and Spice Trade Association (IPSTA) told Business Line.

The net open position is coming down slowly and with the total position at 18,278 tonnes on Monday, 15 per cent of each broker will come to 2,741 tonnes, he said.

Spot prices ruled steady at last weekend close at Rs 13,100 (un-garbled) and Rs 13,700 (MG 1) a quintal. There was no spot selling as the growers are reluctant to part with their produce at the current prices.

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