Pepper futures market on Monday fell sharply on reports of heavy reduction in Vietnam prices coupled with import of about 1,000 tonnes of pepper from Vietnam in March last.

Some quantity of this consignment is allegedly landed in the domestic market and this report said to have activated the bear operators and that aided them to pull the futures prices down, market sources told Business Line .

India imported 1,258 tonnes of black pepper from Vietnam during Jan-Mar this year and became the fourth major importer.

Many leading exporters who had set up processing units in Vietnam are also said to have covered good quantities from Vietnam.

However, the prices remained at higher levels in the international market and some business had taken place in recent days at $6,500 - $6,700 a tonne to different directions, they claimed.

The futures market after witnessing high volatility today fell sharply on bearish sentiments and activities and closed much below the previous day's closing.

April contract on NCDEX fell by Rs 569 to close at Rs 25,696 a quintal. May and June dropped by Rs 619 and Rs 584 respectively to close at Rs 26,311 and Rs 26,821 a quintal.

Total turn over moved up by 382 tonnes to 11,676 tonnes. Total open interest fell by 615 tonnes to 13,325 tonnes.

April and May open interest fell by 524 tonnes and 340 tonnes respectively to 1,047 tonnes and 10,172 tonnes while that of June went up by 206 tonnes to 1,645 tonnes. Heavy liquidation and some switching over was there.

Spot prices in tandem with the futures market trend dropped by Rs 200 to close at Rs 24,800 (ungarbled) and Rs 25,600 (MG 1) a quintal.

Indian parity in the international market today was at $6,200-6,250 a tonne (c&f) but there were no sellers at this level as many in the market believe that it has been pulled down artificially.

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