Pepper prices headed north on supply squeeze coupled with reports of export enquiries. Primary market dealers told Business Line that leading brokers were making enquiries on behalf of exporters as at the current rates there are chances for demand coming in for the Malabar grade.

Added to this, arrivals continued to remain thin. Some 22 tonnes of fresh pepper arrived and 20 tonnes were traded all afloat, they said. Encouraged by these factors, prices moved up, market sources said.

Activities were limited on the exchange and there was switching over from April to May.

Overall the market was volatile. The April contract on the NCDEX increased by Rs 470 to Rs 36,000 while May shot up by Rs 525 to Rs 35,975.Total turnover increased by 384 tonnes to 1,686 tonnes. Total open interest remained unchanged at 2,293 tonnes.

Spot prices rose by Rs 200 to close at Rs 34,800 (ungarbled) and Rs 36,300 (MG 1) a quintal.

Indian parity in the international market was at $6,950 (c&f) for prompt shipments while April and May were at $6,900 a tonne (c&f).

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