Pepper market last week witnessed mixed trend with limited activities due to slack demand from both overseas and domestic market.

Though the Indian parity last week remained below other origins and was complimented by overseas buyers, there was no orders forthcoming. One of the reasons attributed was the alleged delay in transhipment from here for want of timely mother vessels. Reports of easier Vietnam market used by the bear operators as a tool pulled the market down while bull operators capitalising on the current limited availability pushed up prices. Dec contract on the NCDEX last week increased by Rs 510 to close at Rs 35,620 a quintal, while Jan and Feb dropped by Rs 180 and Rs 360 respectively to close at Rs 34,700 and Rs 34,405 a quintal.

Total turnover increased only by Rs 2,462 tonnes last week to close at 26,093 tonnes. Total open interest moved up by 982 tonnes during the week to end at 12,235 tonnes.

Spot prices increased by Rs 400 during the week to close at Rs 33,500 (ungarbled) and Rs 35,000 (MG 1) a quintal.

During last week some good quantities were traded on the spot due to non-movement of consignments from Idukki to the other side of the border in Tamil Nadu because of the unrest across the border due to the Mullaperiyar dam dispute.

Goods, which used to be taken to the neighbouring state evading taxes, were being brought to the terminal market. Similarly, following slackness in domestic demand, Coorg pepper was also reportedly coming to the terminal market via Kerala's northern districts, they said.

Lack of overseas demand for the past one week could also be attributed to the fluctuation in the currency rates on the one hand and reports of Vietnamese new crop arrival next month on the other.

There was reportedly good pressure last week from Karnataka, which has reduced its offering price for 550 GL to Rs 338-339 a kg delivered Kochi.

As the prices of light berries in Sri Lanka and Vietnam are high, because of both higher quotes and weakening of rupee against the dollar, the extraction industry, which used to import an estimated 12,000 tonnes every year, has started running around for light berries in Kerala's Pathanamthitta, growers in the district told Business Line .

Sellers were limited and availability of high bulk density pepper continued to remain tight. Domestic demand from up country, despite it being the grinding/crushing and winter season, has been slow because of supply of pepper bought earlier at low prices by stockists in north Indian centres.

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