Pepper prices continued to rule hot on the spot on emergence of buying support amid tight availability. Having increased to unreasonable levels on the commodity-specific regional exchange on Tuesday, March contracts underwent correction, market sources told Business Line.

The upcountry demand was strong and much of it was being met by direct supplies from the primary markets and through inter-State dealers, they said. Consequently, arrivals at the terminal market continued to remain thin. In fact, at this time of the season in the past above 100 tonnes pepper used to arrive at the terminal market. Currently, daily arrivals are 20 tonnes. Farm-grade pepper from Wayanad is being traded at ₹517-520 a kg. Idukki’s Rajkumari pepper is fetching ₹525, while in Adimali high range pepper is being traded at ₹520-522. In Karnataka, small lots are trickling in and it has smaller crop this year, they said.

On the NMCE, March contract increased by ₹200 a quintal to ₹52,400 while April contract was not opened. Turnover and net open position were insignificant. Spot prices went further by ₹200 to ₹50,800 (ungarbled) and ₹52,800 (garbled) a quintal. Export prices were at $8,700 c&f Europe and $8,950 a tonne c&f US.

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