The Hindu Business Line : Pepper declines on poor buying

PEPPER prices fell by Rs 100 a quintal in spot sales while the futures except for August and January 5 delivery, also witnessed a decline on Saturday compared to last Monday.

Spot prices of MG 1 and ungarbled stood at Rs 7,100 and Rs 6,800 a quintal on Saturday as against Rs 7,200 and Rs 6,900 on last Monday. Futures prices were August Rs 7,051 as against Rs 7,033 on August 2. September Rs 7,186 (Rs 7,204), October Rs 7,392 (Rs 7,453), November Rs 7,486 (Rs 7,533), December Rs 7,470 (Rs 7,517) and January Rs 7,589 (Rs 7,512).

There is good domestic demand but the major buyers in the upcountry markets are waiting for Sri Lankan pepper to arrive. While other traders/dealers in north India are meeting their demand by buying directly from the primary markets and transporting from there by evading tax.

There has been no overseas demand because of the high prices prevailing here, market sources told Business Line. As against the Indian parity of $1,650 a tonne, Indonesian price was $1,450, Brazil $1,325 and Vietnam $1,225 a tonne.

According to reports, fall in Indonesian production is likely to be more than what was predicted earlier. Almost 50 per cent of the harvesting in Indonesia is said to have been over.

Meanwhile, Vietnamese prices ruled steady while those of Brazil had marginal fluctuation attributed to the changes in its currency value.

Sri Lanka has been offering at $1,450 a tonne. Appreciation of Indian rupee against the dollar in recent days seems to have restrained the Indian importers from buying at this rate now. However, it is expected that Sri Lanka would reduce the price to $1,400 a tonne, the sources added.