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Pepper market on Tuesday headed south on liquidation and limited activities.
The market was highly volatile in the opening session and touched the highest price of the day and then dropped sharply to the hit the lowest price of the day in the forenoon session itself.
Then it recovered and all the contracts ended marginally below the previous day closing.
The volume dropped sharply as medium and small players said to have lost interest and moved out of the market due to high volatility , market sources told Business Line .
Exporters covered small quantities at Rs 4 below the July delivery price.
There was good liquidation of July and switching over to August and September.
Investors who were offering discount of Rs 10 a kg below the July price have reduced it to Rs 4 a kg now.
Indian parity is competitive in the world market and enquiries are expected. But, nobody has got the confidence to make offers for big quantities because of the high volatility in the market on the one hand and non-availability on the other.
Turnover dips
July contract on the NCDEX dropped by Rs 99 to close at Rs 27,142 a quintal.
August and September declined by Rs 96 and Rs 57 respectively to close at Rs 27,591 and Rs 27,921 a quintal.
Total turn over fell by 3,300 tonnes to close at 3,540 tonnes.
Total open interest declined by 93 tonnes to 13,203 tonnes.
July open interest fell by 191 tonnes to 7,513 tonnes while that of August and September moved up by 50 tonnes and 41 tonnes respectively to close at 3,961 tonnes and 1,071 tonnes.
Spot steady
Spot prices remained steady at previous levels on limited activities and last selling interest in growers at the current prices at Rs 26,300 (ungarbled) and Rs 27,300 (MG 1) a quintal.
Indian parity in the international market was at $6,400-6,450 a tonne (c&f).
Vietnam has offered FAQ 550 GL at $5,900 a tonne which works out to Rs 268 a kg when imported into India while the farm grade pepper here is reportedly available at Rs 265-268 a kg.
“In fact, nowhere the pepper is available cheaper than in India”, some of the traders claimed.
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