The pepper market moved up on Tuesday on good domestic demand amid limited supply. All active contracts closed above the previous day’s closing.
Exporters who had made commitments earlier were buying from the exchange for fulfilling their commitments in March. But, many are apprehensive of getting delivery as the material is locked up in the warehouses waiting for clearance from the food safety authorities, market sources told Business Line.
Some were even covering from the spot market even though spot prices were ruling high. These factors have aided the price rise.
On the spot, 22 tonnes of fresh pepper arrived and that were traded at Rs 390 to 410 a kg, depending upon the quality such as, moisture content, bulk density and area of production, they said.
February contract on the NCDEX increased by Rs 495 a quintal to close at Rs3 9,310. March and April moved up by Rs 5 and Rs 125 respectively to close at Rs 37,050 and Rs 3,5595 a quintal.
Total turnover increased by 514 tonnes to close at 1,777 tonnes indicating good buying and selling. Total open interest declined by just three tonnes to 3,644 tonnes.
Open interest in February decreased by 224 tonnes to 795 tonnes on liquidation while that of March and April increased by 180 tonnes and 11 tonnes respectively to 2,052 tonnes and 546 tonnes, indicating additional buying.
Spot prices increased by Rs 100 a quintal to close at Rs 40,000 (ungarbled) and Rs 41,500 (MG 1) a quintal.
Indian parity in the international market has gone up to around $8,400 a tonne (c&f) for prompt delivery while February remained at around $7,400 a tonne (C&f) and Mar at around $7,350 a tonne (c&f) and remained much above other origins, they said.