The pepper market after remaining highly volatile on Wednesday recovered marginally on emergence of some positive trends in the tug of war between both the operators.

The market opened on a declining trend and the active deliveries touched the lowest levels in the opening session itself and then January moved up sharply by Rs 1,060 a quintal to Rs 30.310 a quintal and remained highly volatile. Then February also increased by around Rs 850 a quintal and then declined to move up and touch the highest price of the day in the afternoon and to drop and close above the previous closing.

It appears that when the market was dropping in the opening session, the small and medium players panicked and liquidated and thereafter when the market trend changed as there was good buying of February and March, market sources told Business Line .

The traders alleged that the introduction of 10 per cent additional margin on buyers at a time when the Indian parity is competitive in the international market was “unrealistic”. It is “no longer a jacked up price, hence the authorities should remove the 10 per cent margin on the buyers keeping also in mind that the new crop has start arriving in the market”. The farmers and local traders, they said, are planning to submit a representation to the Union government on this issue, they said.

January contract on the NCDEX moved up by Rs 175 to close at Rs 30,080 a quintal. February and March increased by Rs 305 and Rs 200 respectively to close at Rs 30,570 and Rs 30,680 a quintal.

Total turnover dropped by 1,351 tonnes to close at 5,371 tonnes. January open interest fell by 960 tonnes to 4,563 tonnes. February and March increased by 272 tonnes and 103 tonnes respectively to close at 2,284 tonnes and 922 tonnes showing purchases. Spot prices remained steady at the previous levels at Rs 29,800 (ungarbled) and Rs 31,300 (MG 1) a quintal.

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