Higher prices for Indian pepper have led to some overseas buyers in selected markets to shift to pepper from other countries. These buyers have been supporting Malabar even at a $200 premium over other origins,according to export sources.

At the same time, a strong domestic market has been keeping the Indian pepper firm. Consistent upcountry demand, especially from industrial users amid a squeeze in availability has kept the prices at higher levels, market sources told Business Line.

Selling pressure has reduced. Now, the trade is looking for Karnataka pepper which is expected to hit the markets from March 15. According to them, the domestic demand will surge in the coming days because of requirement for Holi. Thereafter, there it might slow down.

On the IPSTA platform day trading for 80 tonnes took place on Tuesday, they said. At the same tim,e arrivals continued to be thin. On Tuesday, 30 tonnes of farm grade pepper were traded between ₹515 and ₹530 a kg. On the NMCE, March contract moved up by ₹154 to ₹53,000. Turnover and net open position were insignificant. On the IPSTA, March and April contracts increased by ₹600 and ₹100 respectively to ₹53,327 and ₹53,486 a quintal.

Spot prices remained unchanged at ₹51,500 (ungarbled) and ₹53,500 (garbled) a quintal . Export prices were at $8,700-50 c&f Europe and $8,950-9,000 a tonne c&f US and remained totally outpriced.

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