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Pepper market bounced back on Friday on bullish activities and limited supplies.
There were no selling pressure for physical pepper. There appears to be a calculated move to depress and push the market up by operators.
As a result, no fresh deposits are allegedly taking place in the warehouses for want of space, coupled with procedural delay.
It takes 3-4 days after depositing the material to come to the demat account and another day for getting into the exchange account.
This “inordinate procedural delay,” despite having introduced the modern sophisticated system for speedy expedition, is aiding those want to play with the market, trade sources alleged. It is high time, therefore, for the authorities to streamline/rectify this system so that it could function like some other warehouses where the material deposited today gets into the account the next day, they demanded.
The stock position is said to be about 4,300 tonnes and, of this, 3,300 tonnes have already been allotted to buyers and the balance 1,000 tonnes would be tendered in June for delivery, market sources told Business Line .
June contract on the NCDEX increased by Rs 360 to close at Rs 29,364 a quintal. July and August moved up by Rs 344 and Rs 272, respectively, to close at Rs 29,084 and Rs 29,015 a quintal.
Total turn over
Total turn over fell by 4,012 tonnes to 4,922 tonnes. Total open interest declined by 58 tonnes showing god switching over. June open interest dropped by 615 tonnes to 3,297 tonnes, while that of July and August moved up by 533 tonnes and 17 tonnes, respectively, to 5,520 tonnes and 1,344 tonnes, showing good switching over to July.
Spot prices in tandem with the futures market and on limited supply moved up by Rs 100 to close at Rs 27,300 (ungarbled) and Rs 28,100 (MG 1) a quintal.
Indian parity in the international market was at $ 6,700 a tonne (c&f) and remained totally out priced.
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