The Hindu Business Line : Pepper prices up Rs 200 a quintal

, PEPPER prices moved up by Rs 200 a quintal last week at the terminal market here on reports of drop in pepper production next season and the State Government's decision not to sell the 4,800 tonne of pepper procured by it in the domestic market.

Prices of garbled and un-garbled pepper on Saturday were Rs 6,400 and Rs 6,000 a quintal as against Rs 6,200 and Rs 5,800 respectively on July 30.

Futures prices have also showed a tangible increase. August shipments were quoted at Rs 6,524 a quintal as against Rs 6,181 on July 30. Sept. Rs 6,825 (Rs 6,466), Oct. Rs 6,760 (Rs 6,405), Nov. Rs 7,002 (Rs 6,633), Dec. Rs 7,070 (Rs 6,697) and Jan. Rs 7,156 (Rs 6,799) a quintal.

The crop in Kerala's Wayanad district and Coorg region of Karnataka is reported to be less by 20 to 25 per cent in the coming season due to incessant heavy rains. A similar situation is predicted for the crop in the Idukki district also.

Domestic market has been activated by the current trend and that in turn has pushed up the prices. Though the prices have shown an upward trend the physical delivery is not taking place, market sources pointed out.

However, demand from overseas is virtually nil at present, as the international players are waiting for the prices to drop, market sources here told Business Line.

Sri Lanka, which has not been offering pepper of late, has raised its price to $1350-1,400 a tonne.

Import of pepper is going on with an average of 2,000 tonne a month in recent months and given this trend the total imports are estimated to cross 20,000 tonne this year.

Where as, the Indian exports would be down to around 14,000 tonne this year, they claimed. Imports from Sri Lanka are going straight into the domestic market.

The imported pepper at Rs 62 a kg is still said to be cheaper than that of the domestic price because of the local tax plus transportation and other expenses.

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