Pepper futures on the National Commodity and Derivatives Exchange Ltd (NCDEX) gained four per cent to Rs 42,250 a quintal on lower inventory in the domestic market.
However, fall in demand for Indian pepper variety in the international markets capped much of the gains.
Domestic arrivals stood at 21 tonnes, while the offtake was at 20 tonnes on Saturday.
Prices in the international market were being quoted at $8,400 a tonne (C&F), while Vietnam was offering its produce at $6,000 a tonne for 500 GL. Brazil exported pepper at $6,150 a tonne for the B-Asta grade.
Global production this year is expected to increase seven per cent to 3.2 lakh tonnes compared with 2.98 lakh tonnes in 2011 with a sharp rise of 24 per cent in Indonesia and 10 per cent in Vietnam.
Pepper futures may gain on lower inventory and tight supply.
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