Black pepper price dips as demand dries up
Black pepper, which touched nearly Rs 170 per kg about a fortnight ago, is now a shade cheaper.
By ET Bureau |
KOLKATA: Black pepper, which touched nearly Rs 170 per kg about a fortnight ago, is now a shade cheaper with traders going slow in picking up the spice on seeing a lull in demand for spice from local markets and exporters.
Responding to a flat demand for black pepper from local traders and exporters as well over the past few days, the pungent spice shed Rs 25 per kg and comes down to Rs 145 per kg on Tuesday at its main trading terminal at Kochi.
The climbdown in price has narrowed down the price differential between Indian black pepper and other origins, which consequently has brightened the prospect of pushing Indian black pepper into the export market, for both the premium quality Malabar Grade-1 and the average ASTA grade.
According to commodity analyst Angel Commodities, Indian prices of pepper in the international market are quoting at around $3,100 per tonne against $3,000/tonne, $3,150/tonne and $3,200/tonne, quoted by Brazil, Vietnam and Indonesia respectively.
Overall, an easy trend has surfaced in the global market following reports of arrival of the current year���s crop from Brazil, noted Angel Commodities. Pepper production in Brazil is estimated at 30,000-32,000 tonnes in 2009.
Due to a price differential of over $200/tonne between Indian and other origins, black pepper exports from India declined more than 28% to 6,750 tonnes in April-July, 2009.
Responding to a flat demand for black pepper from local traders and exporters as well over the past few days, the pungent spice shed Rs 25 per kg and comes down to Rs 145 per kg on Tuesday at its main trading terminal at Kochi.
The climbdown in price has narrowed down the price differential between Indian black pepper and other origins, which consequently has brightened the prospect of pushing Indian black pepper into the export market, for both the premium quality Malabar Grade-1 and the average ASTA grade.
According to commodity analyst Angel Commodities, Indian prices of pepper in the international market are quoting at around $3,100 per tonne against $3,000/tonne, $3,150/tonne and $3,200/tonne, quoted by Brazil, Vietnam and Indonesia respectively.
Overall, an easy trend has surfaced in the global market following reports of arrival of the current year���s crop from Brazil, noted Angel Commodities. Pepper production in Brazil is estimated at 30,000-32,000 tonnes in 2009.
Due to a price differential of over $200/tonne between Indian and other origins, black pepper exports from India declined more than 28% to 6,750 tonnes in April-July, 2009.
ADVERTISEMENT
However, the prospect of improving India���s exports in the coming months has led speculators to bet for higher prices in futures trading. This has seen pepper quoting at Rs 14,930 per quintal for November delivery at NCDEX and at Rs 15,235 per quintal for December delivery. The prospect of rise in demand for the spice in the festive season, which is due to start from September-end, has also contributed to the bullish sentiment in futures trading.Too busy to trade in stocks? Invest in Mutual Funds with ET Money!
Bookmark or read stories offline -
Download ET Markets APP
Download ET Markets APP
ADVERTISEMENT
