The Hindu Business Line : Pepper rules steady

PEPPER prices ruled steady at the terminal market here while there has been no activity in the international market as the players are waiting and watching the trend in producing countries.

Indonesian production is reported to be less while rumours are making rounds that Brazil would have an increased production this year.

As against the Indian parity of $1,700 a tonne, Indonesia has offered July/August shipment at $1,475 while Brazil and Vietnam at $1,375 and $1,215 a tonne respectively.

"However no clear picture has emerged yet," Mr Kishor Shamji, President, India Pepper and Spice Trade Association, said.

In the domestic market there is some demand but that is met by direct buying from the primary markets in Wayanad and Idukki at the terminal market price, he said. This has resulted in shrinkage in arrivals at the terminal market which now stood at around 5-7 tonne a week.

"The importance of terminal market is diminishing day by day because of this kind of operations at the primary markets evading sales tax in a big way," he told Business Line.

Because of the ensuing festival season in North India, there could be more demand in the coming months. But the traders apprehend that this demand might be "satisfied with imports," he alleged.

Spot prices of MG 1 and un-garbled on Tuesday remained at last weekend's level of Rs 7,400 and Rs 7,100 a quintal respectively.

Futures prices (for quintal) were July Rs 7,522 as against Rs 7,560 last weekend. August Rs 7,743 (Rs 7,812), September Rs 7,877 (Rs 7,868), October Rs 8,101(Rs 8,092), November Rs 8,129 (Rs 8,120) and December Rs 8,121(Rs 8,112).