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The pepper market continued to run hot on limited availability in the international market and this situation is likely to stay for some time .
Actual availability in Indonesia will be known only after the Id-ul-fitr holidays, but indications so far are that output this year is low . In Brazil supply is affected by some financial problems and that is reportedly squeezing the global availability. Meanwhile, Vietnam is said to have a shortage of heavy pepper because of conversion into white pepper resulting a squeeze in Asta grade supply. Similarly, light pepper availability is also tight there.
On the demand side, because of the prevailing high prices, overseas buyers have been buying hand to mouth and not maintaining inventories. Short transit time taken at ports like Mundra was said to be facilitating buyers to get the material in time. Now, many buyers who have been waiting for the prices to decline need to cover to meet their requirements and hence they are now looking at India. Some buying is also taking place at present.
In the domestic market also demand is to pick up as the festival season is round the corner. Industrial and consumer demand is to emerge from the beginning of next month, trade sources said.
September, October and November contracts on the NCDEX increased by Rs 826, Rs 998 and Rs 1,260 respectively to close at the week end at Rs 33,229, Rs 33,851 and Rs 34,236 a quintal.
Total turn over increased by 12,128 tonnes to 56,764 tonnes.
Spot prices soared by Rs 800 to hit the highest-ever level of Rs 30,300 (ungarbled) and Rs 31,300 (MG 1) a quintal last weekend.
Indian parity in the international market was at $7,450 a tonne (c&f) and remained slightly cheaper, they said.
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