The upsurge continued in pepper futures prices on tight supply amid strong domestic demand.
Reports that the entire quantity of pepper locked up by the Food Safety authorities in the Kerala warehouses would be destroyed have created a panic in the upcountry markets.
These factors coupled with strong domestic demand amid tight availability have pushed the prices further up.
On the spot, seven tonnes pepper arrived from the plains and that were traded at Rs 403 a kg.
September and October contracts on the NMCE soared by Rs 160 and Rs 1,082 a quintal respectively to Rs 44,200 and Rs 44,600.
Total turnover dropped by two tonnes to 22 tonnes.
Total open interest slipped by two tonnes to 37 tonnes. There was said to be no trading on the IPSTA platform, they said. Spot prices remained unchanged at Rs 40,300 (ungarbled) and Rs 42,300 (garbled) on limited activities. Indian parity in the international market slipped to $6,925 a tonne (c&f) Europe at $7,175 a tonne (c&f) US, despite increase in futures due to weakening of the rupee.
Overseas trend
In the international market, Brazil and Indonesia have become active.
According to the Vietnam Pepper Association (VPA), Vietnam pepper output for this year is estimated at 1,00,000-1,10,000 tonnes.
The country has exported 25,000 tonnes in the first quarter.
It is expected that Lampung (Indonesia) would have around 25,000-30,000 tonnes black pepper, if the projected 30-40 per cent shortfall in this year’s crop is turned out to be true.
Pepper markets remain steady/firm. Vietnam has increased offers but levels are unchanged.