Commodities

Pepper prices drop at Kochi auctions

V.Sajeev Kumar Kochi | Updated on January 29, 2020 Published on January 29, 2020

The direct pepper sale from the primary markets of Wayanad and Coorg to Gudalur impacted prices in Kochi on Wednesday, which was down by ₹1 per kg.

Traders reported that the primary market in Gudalur was very active after Tamil Nadu-based dealers sourced sufficient quantities of both Karnatka and Wayanad pepper to meet the demands of end-users in South India. The quantity traded there was in the range of 30 to 40 tonnes, while the offtake in Kochi terminal market was only 15 tonnes. They cited the thriving supply in the primary market as the reason for a downward price trend in Kochi.

The average price realised for ungarbled pepper was ₹316 a kg, while MG1 garbled was quoted at ₹336. The rates for new pepper stood at ₹306.

According to Kishore Shamji of Kishor Spices, the trading demand was very slow in Kochi because of the availability of imported stock smuggled through the borders in the North Indian consuming markets. The dealers in the consuming markets have informed of this emerging trend which is expected to continue.

This would affect the sale in terminal markets as well as producers and primary market dealers both in Kerala and Karnataka. Moreover the government will lose GST on account of this illegal transaction which is carried on cash and carry mode, he said.

Trade analysts Acumen Capital Markets said that the February futures price is changed at ₹343.55 at close on Tuesday. The futures showed a neutral trend.

Published on January 29, 2020
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