Financial Daily from THE HINDU group of publications
Monday, Apr 03, 2006
Financial Daily from THE HINDU group of publications Monday, Apr 03, 2006 |
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Government
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Agricultural Policy Industry & Economy - Exports & Imports Agri-Biz & Commodities - Spices & Condiments Export subsidy to activate pepper market G.K. Nair
Kochi , April 2 The pepper market, which was passing through a dull phase, is expected to activate in the coming days following the Centre's decision to extend export subsidy till the targeted quantity of 20,000 tonne of pepper is achieved. Due to the uncertainty over the subsidy extension till it was announced on March 30, the exporters were not active in the market. Add to this was the working capital constraints due to non-refund of sales tax by the Union Government, which has also started refunding just a couple of days back. Besides, the strike at the Cochin port has also affected the trade, trading sources told Business Line. As result, nobody is taking any fresh sales. Exporters are also not buying.
SPOT BUYING
However, some international players, central cooperative societies and some investors who got funds are buying from spot delivery at a major exchange. The situation is likely to improve next week, as selling and buying activities would commence from Monday. Moderate demand is expected from the domestic market. Though Vietnam has reduced its price for ASTA grade to $1,550 a tonne c&f on heavy arrivals, demand for Malabar Gold (MG) pepper from selected pockets in the world market is expected. The export subsidy would enable the Indian exporters to offer MG 1 at an acceptable price, they claim. Indian parity is at $1675-1,700 a tonne c&f. Brazil, which does not have much to offer, is quoting ASTA grade at $1,650 c&f. Indonesia was quoting $1,575-1,600 a tonne c&f. Futures prices are also likely to show some improvement in the coming weeks..
More Stories on : Agricultural Policy | Exports & Imports | Spices & Condiments
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