A better price realisation in the primary markets itself has prompted pepper growers to sell their commodity to dealers at farm gates.
This situation has reflected in black pepper arrivals in Kochi terminal market on Wednesday, as the quantity offered was only five tonnes. The market remained steady and the average price realised was Rs 325 per kg, the same level quoted in the previous day.
The growers in Idukki reported that they could sell their produce at Rs 330-340 to Tamil Nadu based dealers in Kambam, Theni, Erode etc, who bought it from the door step of farmers. Since farm gate sales are getting better prices, farmers are hesitant to bring their offerings to Kochi as it would incur them additional cost for transportation, loading and unloading charges etc. Moreover, there is no need to remove the dust from the commodity when they sell at farms gate, Kishore Shamji of Kishor Spices said adding that this practice will affect the Kochi pepper trade both financially as well as turnover wise.
On the other hand, the buyers from the consuming markets inform that they are getting pepper at Rs 330/kg + GST which would be more competitive than buying from the primary markets. There are also reports that some of the dealers have taken speculative position, anticipating a price decline, which is not happening.
According to analysts Acumen Capital Markets Ltd, pepper December futures is showing some weakness on daily chart.