Financial Daily from THE HINDU group of publications
Monday, Aug 29, 2005
Financial Daily from THE HINDU group of publications Monday, Aug 29, 2005 |
|
|
|
|
|
Agri-Biz & Commodities
-
Spices & Condiments Imported pepper hits domestic prices G.K. Nair
Kochi , Aug 28 PEPPER prices dropped by Rs 150 a quintal during the week for want of buying support following dumping of cheap pepper of foreign origins. Spot prices on Saturday were garbled Rs 6,250 a quintal and un-garbled Rs 5,850 as against Rs 6,400 and Rs 6,000 a quintal respectively on August 20. Futures also fell by over Rs 300 a quintal. The prices quoted on Saturday were September Rs 6,030 a quintal as against Rs 6,344; October Rs 6,200 (Rs 6,523); November Rs 6,421 (Rs 6,755); December Rs 6,327 (Rs 6,656); January Rs 6,407 (Rs 6,737) and February Rs 6,451 (Rs 6,787). Contrary to expectations following the commencement of the festival season, the domestic demand has not picked up as the requirements are fully met by the imported Sri Lankan pepper, trading sources here told Business Line. According to them, pepper from the Island nation is being dumped into the domestic market here at Rs 55 a kg ($1,250 a tonne). Sri Lanka is estimated to have a production of 20,000 tonne this year and almost the entire quantity is likely to flood the domestic market. Even on the apprehension that the Indian Government would impose some restrictions, consignments are moved into the ports such as Chennai and Mumbai without any contract, they alleged. On the other hand, the imported pepper attracts no local taxes under the existing provisions in the rules that stock transfer could be done without payment of any tax. As a result, high seas sales also do not attract the tax. This has, in fact, watered down all the efforts of the Kerala Government to arrest the price fall by procuring around 4,800 tonne of black pepper at Rs 75 a kg. Meanwhile, in the world market the players are closely watching the crop situation in the producing countries. Reports emanating from Indonesia, Brazil and Vietnam indicate of a fall in production this year. This situation seems to have prompted the local arm of the multinationals in India to buy spot pepper at the prevailing prices during the past two to three weeks, the sources claimed. Indonesia was offering at $1,300-1,325 a tonne while Brazil $1,350-1,375 a tonne. Vietnam has quoted $1,350-1,375 a tonne. Vietnam is said to be converting the black into white pepper as Indonesian production of white/black pepper is expected to be less this year.
Article E-Mail :: Comment :: Syndication :: Printer Friendly Page
|
Stories in this Section |
|
The Hindu Group: Home | About Us | Copyright | Archives | Contacts | Subscription Group Sites: The Hindu | Business Line | The Sportstar | Frontline | The Hindu eBooks | The Hindu Images | Home |
Copyright © 2005, 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
|
