The Hindu Business Line : Pepper continues to dip

THE declining trend in pepper prices continued for want of buying support as a result of reported reduction in prices by Brazil and other producers in the international market.

Also, transportation of pepper from the primary market directly by evading tax is also pointed out as the reason for weak demand in the terminal market, where arrivals have shrunk to less than five tonnes a week.

Spot and futures market witnessed a decline on Tuesday. In the spot market, MG 1 and ungarbled varieties were sold at Rs 6,400 and Rs 6,100, respectively a quintal as against Rs 6,500 and Rs 6,200, respectively during last weekend. Futures prices on Tuesday were Sep Rs 6,454 a quintal as against Rs 6,537 during last weekend, Oct Rs 6,523 (Rs 6,606), Nov Rs 6,651 (Rs 6,791), Dec Rs 6,735 (Rs 6,876), Jan Rs 7,070 (Rs 7,118) and Feb Rs 6,936 (Rs 6,983) a quintal.

Unconfirmed reports said Brazil was quoting B-1 at $1,265 a tonne, while ASTA grade at $1,300-$1,325, which trading sources here described as "part of a propaganda to push the prices down". Indonesia, which does not have much stock, has quoted $1,400-$1,425 tonne while Vietnam was offering ASTA grade at $1,425 a tonne.

The Indian parity was $1,500-$1,525 a tonne. Some stray buying at $1,500 a tonne has taken place from some pockets in Canada, Europe and the US. At around $1,500, buyers may come forward for the MG 1, market sources said.