Declining pepper prices in the last few days seem to have prompted dealers to liquidate stocks as evident from the increased arrivals in Kochi pepper market.

The offtake on Friday was 32 tonnes and the market remained steady by realising an average price of Rs 318 per kg for ungarbled varieties. MG1 garbed varieties were quoted at Rs 338 while new pepper stood at Rs 308 per kg.

Kishore Shamji of Kishor Spices said some of the dealers, who were holding stocks after buying directly from farmers, have decided to liquidate them because of the conclusion of the pilgrim season as well as reduced local demand. This contributed to improved arrivals in the market in the last two days. The offered quantity on Wednesday was 42 tonnes.

The market is now ruling steady as the demand from end-users and industry has started picking up, he said.

However, the farmers and dealers in the primary market were of the view that there could be some fall in the total tonnage on quality issues. This may affect the bulk density of the crop. The total production in this season is expected to be 65,000 tonnes, he said.

Trade analysts Acumen Capital Markets said that the February futures fell by 0.9 per cent or Rs 3.50 at close on Thursday. The new crop arrival is expected to pick up the pace shortly.

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