Pepper market continued its decline in the first two active contracts while the third gained marginally on Monday. The reason for the drop has been attributed to liquidation by cartels and limited activities.
No processor was buying as they were apprehensive of the quality of the material. Depositing of all the deliveries was said to be taking place after testing of samples drawn from the lots at the labs of Spices Board and of private parties, market sources told Business Line.
The high-power delegation deputed by the FMC Chairman is said to have inspected the warehouses and drawn samples of the cargo brought for depositing. The members of the delegation are understood to have studied the situation and assessed the ground realities.
Operators were allegedly trying to demoralise the trade by making false propaganda, the sources said. Activities were limited as the market is preparing for the “muharat” trading on Divali tomorrow, they added.
Today 18 tonnes of farm grade pepper arrived and 12 tonnes were traded at Rs 392, 395, 400 and 402 a kg depending upon the grade, quality and area of production.
November contract on the NCDEX decreased by Rs 125 a quintal and closed at Rs 41,615 a quintal while December declined by Rs 90 to close at Rs 40,890 a quintal. February, however, moved up by Rs 115 a quintal to close at Rs 36,455.
Total turnover dropped by 310 tonnes to close at 1,379 tonnes. Total open interest fell by 209 tonnes to 7,902 tonnes.
November open interest decreased by 92 tonnes to 1,554 tonnes while that of December and February fell by 112 tonnes and 7 tonnes respectively to close at 5,364 tonnes and 812 tonnes.
Spot prices in tandem with the futures market trend declined by Rs 100 a quintal to close at Rs 39,200 (ungarbled) and Rs 40,700 (MG 1) a quintal.
Indian parity in the international market was down at $7,800 a tonne (c&f) for Europe and $8,100 a tonne (c&f) for the USA. Decline in futures coupled with weakening of the rupee against the dollar pulled the parity down.