Pepper prices dropped on reports of selling pressure on Monday. The market was volatile especially in April contracts that closed lower at downward trend to the last traded price (LTP) of Rs 35,790 a quintal.

There were sellers at the buyers’ discounted price provided the payment is made on or before March 31, market sources told Business Line . This phenomenon has activated the operators to push the market down, they said.

Agents of crushers/grinders in Chennai and Erode were reportedly buying high bulk density pepper from Kerala’s Idukki district at terminal market prices on cash and carry basis.

Arrivals on the spot stood at 32 tonnes and of this 30 tonnes were traded all afloat at the average price of Rs 347 a kg.

Selling pressure continued to persist in Karnataka offering at Rs 325, Rs 330, Rs 335 and Rs 340 depending upon the quality parameters such as bulk density and moisture content.

April contract decreased by Rs 180 to Rs 35,795 a quintal while May contract dropped by Rs 140 to Rs 35,780. Total turnover moved up by 315 tonnes to 1,023 tonnes. Total open interest declined by 10 tonnes to 2,279 tonnes.

Spot prices dropped by Rs 100 to Rs 34,700 (ungarbled) and Rs 36,200 (MG 1) a quintal.

Indian parity in the international market was at $6,950 a tonne (c&f) for prompt shipments and April and May were at $6,900 a tonne. As the difference with other origins is at around $300 a tonne, there are chances for some demand coming for Malabar now, the trade claimed.

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