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Pepper prices was down by Rs 2 per kg at major trading hub at Kochi on Wednesday because of sluggish demand in many markets.
The low demand was mainly because of the expectation of a new crop that would expect to hit the market in the coming days. So the purchase by dealers was very limited, said Kishore Shamji of Kishor Spices. However, there was an improvement in arrivals at 21 tonnes.
The prices of all varieties dropped by Rs 2 and the average price realization of ungarbled pepper was Rs324 per kg (Rs326). The garbled pepper price settled at Rs344 per kg (Rs346) and new pepper at Rs309 per kg.
The fag end of the Sabarimala pilgrim season has also led to increased arrivals to the terminal markets in the last two days following a declining local demand in the primary markets.
During the pilgrim season, Kerala traders had witnessed a surging local demand for black pepper that helped them to fetch a retail price of Rs450-500 per kg in the primary markets itself. Now the arrivals to the terminal market have started improving in the last two days due to the conclusion of the Sabarimala pilgrim season, leading to declining local demand in the primary markets, Shamji said.
There were also reports of the presence of smuggled pepper especially from Nepal and Myanmar, which is finding its way in many North Indian consuming markets, he said.
According to Shamji, the harvesting for new pepper has already started as is evident from the increased arrivals in the terminal markets. The harvesting is expected to continue till March. However, there were reports of mixing up old and new pepper. The bulk density of new pepper is much lower at 500 gml , 525 gml and 550 gml due to climate changes.
According to market analysts Acumen Capital Markets, pepper February futures remain flat at Rs354 when last traded on Wednesday.
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