Pepper prices surged by nearly 1 per cent to Rs 34,300 per quintal in futures trading on Wednesday, as speculators covered—up their short positions at prevailing levels.
However, weak export and estimates of output restricted the gains.
At the National Commodity and Derivatives Exchange, pepper for delivery in March shot up by Rs 335, or 0.99 per cent, to Rs 34,300 per quintal, with an open interest of 733 lots.
Similarly, the spice for delivery in February moved up by Rs 310, or 0.89 per cent, to Rs 35,050 per quintal in 2,795 lots.
Analysts said covering—up of pending short positions at current levels by speculators helped pepper to trade higher at futures trade but higher output and weak export limited the gains.