Financial Daily from THE HINDU group of publications
Tuesday, Apr 02, 2002

News
Features
Stocks
Port Info
Archives

Group Sites

Agri-Biz & Commodities - Spices & Condiments


Pepper prices up on short supply

Our Bureau

KOCHI, April 1

PEPPER prices have shown an upward trend during the last week on short supply and good demand at the terminal market here.

Spot prices increased by Rs 400 a quintal during the weekend to Rs 7,100 and Rs 6,700 for MG 1 garbled and ungarbled respectively from Rs 6,700 and Rs 6,300 per quintal compared to the previous weekend. The future deliveries also rose by Rs 550 to Rs 700 a quintal.

April contracts were at Rs 7,150 per quintal on March 30 as against Rs 6,600 on March 23. May Rs 7,115 (Rs 6,525), June Rs 7,160 (Rs 6,600), July Rs 7,170 (Rs 6,600), August Rs 7,275 (Rs 6,600) and September Rs 7,100 (Rs 6,600).

There were moderate buying activities last week on good domestic demand, while exporters were also active to fulfil their commitments.

The report on the possible drop in the Vietnamese pepper production had also had its impact, Mr Kishor Shamji, President, India Pepper and Spice Trade Association (IPSTA), said. Many in the domestic market were buying and building stocks as the price was low now, he said.

``In fact the domestic market is holding the price and its demand has driven the market up,'' he pointed out.

The present price trend had burnt the exporters' fingers, he said.

To cover the contract commitments many had to buy at higher prices now after committing at a low price, he added.

Meanwhile, according to international market players in Singapore, pepper supply position had become so unpredictable that the decision taking for both buyers and sellers had become more difficult than ever. ``Malabar is the only alternative for another eight weeks and should prices escalate, Sarawak and Lampung will not hesitate to adjust their prices accordingly,'' they said.

Indian stockists, they said, felt more encouraged to hold and as a result the exchange will be more active.

``Over supply will be there. However, it will not necessarily mean that prices will go back to pre-January levels as the supply chain has become bumpier'', they added.

Send this article to Friends by E-Mail

Stories in this Section
Sinha asks NSE to take up commodities trading


Exim policy fails to address core issues
TN agro-based units hail steps to boost exports
Freight subsidy in Exim policy -- TN poultry farmers prepare blueprint for table eggs, meat export
Sluggish trend in leather continues
Economic access through employment -- One way to tackle food security issue
To procure or not to procure
World coarse grains market well supplied
Nabard aid to Karnataka up 6 pc
Kerala: Nabard assistance at all-time high
N. Indian farmers to miss Bt cotton bus
Tobacco Board flayed for losing court case
Pepper prices up on short supply


The Hindu Group: Home | About Us | Copyright | Archives | Contacts | Subscription
Group Sites: The Hindu | Business Line | The Sportstar | Frontline | Home |

Copyright 2002, The Hindu Business Line. Republication or redissemination of the contents of this screen are expressly prohibited without the written consent of The Hindu Business Line