Pepper imports decline on higher prices, supply paucity

Pepper imports via Kochi port have registered a sharp fall in 2013 while exports declined slightly due to unfavourable currency factors and non-availability.

Imports during January–December 2013 through Kochi port dropped by 11.41 per cent to 12,489 tonnes from 14,097 tonnes in the same period in the previous year.

Meanwhile, exports declined by 1.25 per cent to 17,592 tonnes from 17,814 tonnes in the same period, according to Cochin Chamber of Commerce sources.

The decrease in imports has been mainly in the extraction sector. As against 9,567.80 tonnes on 2012, in 2013 imports stood at 7,943.68 tonnes.

Rise in prices, unfavourable exchange rates late last year and non-availability of material in Vietnam were seen as factors responsible for the fall in imports. At the same time, exports were also not viable due to thecurrency factor.

Imports by re-exporters stood at 4,543.47 tonnes last year as against 4,529.34 tonnes the previous year.

However, exports at the national level as per the Spices Board sources, during April-September 2013 stood at 10,200 tonnes valued at ₹423 crore at the unit value of ₹414.71 a kg whereas, it was at 7,515 tonnes valued at ₹309.6 crore at the unit value of ₹411.98 a kg.

As the prices have shot up sharply in recent days, there has, of late, started a correction in the market, market sources told Business Line.

The arrivals have shown an upsurge and that also led to a decline in the market for the past couple of days. Consequently, the domestic demand has slowed down as the buyers resorted to a wait and watch mode, they said.

In fact, the internal demand was so strong earlier in the week, despite rise in arrivals in the market, that some domestic buyers were even showing interest to buy at $9,000 a tonne, the sources said.

On Friday, 50 tonnes of new pepper were traded at ₹528–535 a kg.

“More arrivals are expected as the farmers would prefer to release at the current prices ruling at ₹520 and above a kg”, a primary market dealer in Idukki said.

Rise in arrivals with indications of more in the coming days coupled with slowdown in demand has influenced the futures market also.

On the NMCE, February and March contracts decreased by ₹1258 and ₹810 a quintal respectively to the last traded price of ₹53,210 and ₹53,560 a quintal.

Turnover increased by 3 tonnes to 19 tonnes.

Total net open position declined by 1 tonne to 31 tonnes.

Spot prices fell by ₹400 a quintal to close at ₹52,000 (ungarbled) and ₹54,000 (garbled) a quintal on upsurge in arrivals and slack demand.

Indian export prices were at $8,800 a tonne (c&f) for the Europe and $9,050 a tonne (c&f) for the US and remained outpriced.

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