Pepper futures witnessed high volatility on Thursday with March sliding slightly while April and May moved up in the 'tug of war' between the bulls and bears.

Leading exporters are said to have covered farm grade pepper from Idukki and Wayanad at Rs 221- Rs 223 a kg. Some sellers who needed money, were seen selling, trade sources said.

Exporters seem to prefer farm grade pepper rather than the exchange delivered, market sources told Business Line .

March contract on NCDEX fell by Rs 3 to close at Rs 22,780 a quintal while April and May moved up by Rs 80 and Rs 99 respectively to close at Rs 23,357 and Rs 23,695 a quintal.

Turnover up

Total turnover increased by 4,930 tonnes to end at 16,588 tonnes.

Total open interest declined by 347 tonnes to 13,354 tonnes. There was high liquidation and switching over, they said.

March open interest fell by 908 tonnes while April and May increased by 514 tonnes and 58 tonnes respectively to close at 9,212 tonnes and 1,014 tonnes.

Spot trading

Spot prices remained unchanged in matching demand supply at Rs 21,900 (ungarbled) and Rs 22,700 (MG 1) a quintal.

Indian parity in the international market was at $5,250 - $5,275 a tonne (c&f) and remained competitive. Indonesia was quoted $5,250 a tonne (fob). Vietnam farmers are reportedly holding back stock as they are receiving high prices for their rubber, coffee and cashew. Latest estimates have put Vietnam current crop at 1.15 lakh tonnes. Indian exporters have already bought nearly 2,000 tonnes of pepper from Vietnam for value addition and re-export.

The growers have urged the Spices Board and the Customs authorities to check the quality of the imported material and ensure that the same imported material is re-exported after value addition, farmers in Wayanad and Idukki said.

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