The Hindu Business Line : Pepper futures move up on rumours

Meanwhile, the buyers were simply waiting for the arrival of the new crop and consequent decline in prices on potential selling pressure. But, such a situation, according to market observers, is unlikely given the prevailing tight supply position and the strong domestic demand.

Domestic demand at present is very good due to the severe winter conditions prevailing in the north Indian states. All are buying directly from the primary market and taking the produce out evading tax, they alleged. In this process, the terminal market has lost its importance, they told Business Line.

On the other hand, the rains during the past two days might further delay the arrivals as the maturity of the berries could be delayed. In fact, currently, only green and light pepper is being harvested. The industry engaged in manufacturing green pepper in brine and dehydrated green pepper has been encouraging the growers to harvest the immature pepper. However, only 200 tonne of the produce said to have been harvested so far.

In the international market the prices remained by and large steady and the activities were limited as the buyers are waiting for the new crop in India to arrive in the market.

Lampong Asta was being offered at $3,275-3300 a tonne (f.o.b.) while Brazil has quoted B Asta at $3,150 a tonne (f.o.b.). Vietnam was offering faq 500 GL at $2,950 a tonne (f.o.b.). Indian parity on Wednesday moved up to $3,500-3,550 a tonne (c&f).

CONTRACT POSITION

December contract on NCDEX on Wednesday moved up by Rs 153 a quintal to close at Rs 12,795 from Rs 12,642. The increase in other contracts was from Rs 156 to Rs 344 a quintal.

On NMCE December contract went up by Rs 97 a quintal to close at Rs 12,981 from Rs 12,884. The increase in other contracts except June was Rs 3 to Rs 143 a quintal. June contract has shown a drop of Rs 250 a quintal.

Total turnover on NCDEX increased by 3,837 tonne to 11,673 tonne while that for December, January and February moved up by 7 per cent, 60 per cent and 28 per cent respectively.

On NMCE total turnover moved up by 110 tonne to 811 tonne.

The spot prices ruled steady at previous level of Tuesday at Rs 12,500 (un-garbled) and Rs 13,100 (MG 1) a quintal on Wednesday.