Pepper futures remained volatile last week.

However, there was near convergence of spot and futures price. Besides, on maturity of the March contract, three tonnes were delivered as against “zero” delivery.

However, unlike in the past, the volume delivered was only three tonnes while the spot and futures prices almost converged. In the domestic market, interstate dealers were buying material on behalf of upcountry dealers directly from the primary market/growers at terminal market prices and transported by rail to upcountry destinations.

As obtaining of “C” form in the north Indian markets is claimed to be very difficult, these goods are moved out without any papers, market sources alleged. Apart from this, the refund is also allegedly delayed and, hence, sometraders seemed to have preferred to send without papers.

On the other hand, the financial year ending is also pointed out as the reason for such trading. As the growers are getting terminal market prices at their doorsteps, they were selling their produce to them.

Consequently, arrivals at the terminal market were squeezed. What ever business had taken place were mostly afloat. Overall the futures market was highly volatile last week. June contract has not been listed on the exchange and it is understood that it would be done on receipt of permission from the FMC once all the quality parameters are corrected and complied with, they said.

Selling pressure continued to persist in Karnataka and it was offering 525-540 GL pepper at Rs 335-345 and an estimated 55 tonnes of pepper with 13-13.5 per cent moisture content were traded by Kochi-based leading Indian pepper exporters, they said. Karnataka based exporters were also shipping out pepper from Mangalore port, they said. April and May contracts showed a marginal increase by Rs 225 and Rs 205 respectively to close at Rs 35,990 and Rs 35,930 at the weekend.

The total turnover decreased by 4,358 tonnes to close at 8,447 tonnes indicating fall in activities. Total open interest also fell by 304 tonnes to 2,289 tonnes. Spot prices declined marginally by Rs 200 a quintal to close at Rs 34,800 (ungarbled) and Rs 36,300 (MG 1) a quintal.

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