Comments
Pepper market fell sharply on bearish sentiments last week. Buyers were seen hesitant to buy citing various unfavourable measures imposed by the authorities, of late.
They alleged that the measures were one-sided favouring the sellers. When the margin for buyers is at 27.73 per cent that for sellers is 13.73 per cent. Staggered delivery system introduced recently is also claimed to be not following the market fundamentals at present.
Fluctuation in the currency rates coupled with volatility in the futures market has led to an uncertainty in prices and availability. Stocks are said to be coming down on the exchange platform while May delivery prices were dropping to below spot prices and difference is widening.
Meanwhile, staggered delivery clause will become effective from Monday. Therefore, buying is likely to be less, market sources told Business Line .
Meanwhile, importers were said to be showing interest to cover heavy bulk density pepper allegedly to balance the quality with the material imported for value addition and re-export.
The market last week declined on bearish sentiments. May, June and July fell by Rs 1,305, Rs 505 and Rs 740 respectively to the last traded price (LTP) of Rs 36,150, Rs 37,610 and Rs 38,000 a quintal.
Total turn over increased by 2,699 tonnes to close at 20,058 tonnes.
Total open interest declined by 128 tonnes to 5,438 tonnes.
Spot prices in tandem with the futures market trend fell by Rs 600 during the week to close at Rs 36,200 (ungarbled) and Rs 37,700 (MG 1) a quintal.
Overseas trend
Indian parity in the overseas market is competitive of late following dropped in the prices coupled with weakening of the rupee against the dollar. Other origins were also steady to firmer.
Availability is claimed to be limited world over. Late last month the annual general meeting of the American Spice Trade Association was held in Amelia Island, Florida. Many representatives of the American spice industry together with some representatives from Europe and origin countries gathered to discuss the global situation in spices and herbs, a report said. Special attention was given to the new Food Safety Modernisation Act which calls for increased inspections of both US and foreign spice companies.
Comments
Comments
Comments have to be in English, and in full sentences. They cannot be abusive or personal. Please abide by our community guidelines for posting your comments.
We have migrated to a new commenting platform. If you are already a registered user of TheHindu Businessline and logged in, you may continue to engage with our articles. If you do not have an account please register and login to post comments. Users can access their older comments by logging into their accounts on Vuukle.