Pepper market continued to increase on good buying support and reported supply squeeze in the global market. Spot prices rose to a record. The market opened on a slow note and in the afternoon, witnessed high volatility. It hit the highest price of the day and then declined. Still it ended much higher that the previous close. Local arms of international players bought farm grade pepper at Rs 303-Rs 312 a kg. Investors and exporters were buying. Local dealers in the primary markets sold pepper from Rs 300 a kg onwards. Karnataka pepper is reportedly moving into various trading centres in Wayanad. Processors and inter-State dealers there are in the market buying the farm-grade Karnataka pepper and selling on the exchange platform as MG-1 after processing.

Reported financing problems in Brazil has led to some uncertainty in the market there, resulting in a supply squeeze, trade sources here said.

Besides, a firm trend in Vietnam and Indonesia made Indian pepper cheaper leading to inquiries now coming to India. All these factors aided the price rise, market sources told Business Line .

September contract on the NCDEX increased by Rs 435 to Rs 33,335 a quintal. October and November contracts went up by Rs 384 and Rs 288 respectively to Rs 33,783 and Rs 34,094 a quintal. The turnover fell by 2,308 tonnes to 8,287 tonnes. Open interest increased by 316 tonnes indicating additional purchases. September open interest moved up by 19 tonnes to 8,344 tonnes. October and November and went up by 260 tonnes and 32 tonnes respectively to 3,098 tonnes and 229 tonnes. Spot pepper increased by Rs 200 on buying interest to close at Rs 30,300 and Rs 31,300 a quintal.

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