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Pepper market in India last week was under the influence of bearish sentiments spread by overseas reports and that was used as a tool by bear operators here to pull the prices down even at a time when the Indian parity continued to remain competitive in the international market.
All the origins were reportedly above the Indian parity, probably with the exception of Brazil. Leading European dealers were reportedly telling the buyers overseas that if they could afford to wait till the new crop arrival in India then they would be able to cover at lower prices.
The growers here may pluck and sell immature pepper provided they are offered good price. If they harvested immature pepper so as to cater to the requirement of the industry that might in turn further reduce the availability of black pepper during the current season, the trade claimed. Already, the total production in India is estimated at somewhere between 48,000 tonnes and 55,000 tonnes, as the output in Karnataka is claimed to be better than that of the previous season.
Upward trend
However, the overall exportable surplus in the country is unlikely to be much given the huge domestic demand. Since the price has been ruling above Rs 330 a kg for ungarbled and over Rs 350 a kg for MG 1 many of the farmers and dealers might have sold much of their stocks. Only those strong hands which can afford to hold for long might only be holding the commodity.
Availability at present is, reportedly, in Brazil and India and what is available here is on the exchange platform. In the spot market supplies continued to remain limited so far. The new crop arrival is to begin normally from November and that would by and large depend on the northeast monsoon.
Futures volatile
Last week witnessed sharp fall in all the contracts. Nov, Dec and Jan fell by Rs 1,315, Rs 1,500 and Rs1,590 respectively to close at Rs 35,525, Rs 35,825 and Rs 36,190 a quintal.
Total turn over fell by 4,340 tonnes to 32,942 tonnes showing limited activities. Open interest moved up by 350 tonnes during last week, indicating additional purchases.
Spot prices fell by Rs 400 in tandem with the futures market trend last week and closed at Rs 33,800 (ungarbled) and Rs 35,300 (MG 1) a quintal on Saturday.
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