Pepper prices fell on liquidation on Friday as buyers who have gone long began hedging.
Buyers holding long position released April delivery as they were getting pepper from the spot market. This aided the decline, market sources told Business Line.
There was good liquidation in April and switching over to May. On the spot, those who did not sell in March are selling now.
As a result, 40 tonnes of fresh pepper arrived and they were traded afloat at an average price of Rs 348 a kg.
However, Rajakumari (Idukki) pepper was fetched Rs 355, they said. Karnataka pepper of 525 and 535 GL were being sold at Rs 335 and Rs 345 respectively, while those of 500 GL and below were being sold at Rs 325, they said.
Importers were buying high bulk density high range pepper for allegedly mixing with the imported pepper and pushing it into the domestic market at a premium.
April contract on the NCDEX decreased by Rs 150 a quintal to Rs 35,775 while May also dropped by Rs 150 to Rs 35,750. Total turnover dropped by 351 tonnes to 815 tonnes. Total open interest fell by 113 tonnes to 1,886 tonnes.
April open interest decreased by 204 tonnes to 526 tonnes, while that of May increased by 91 tonnes to 1,360 tonnes. Spot prices remained unchanged at the previous levels of Rs 34,800 (ungarbled) and Rs 36,300 (garbled) on matching demand and supply.