Low stocks to check fall in pepper prices

KOCHI: Though pepper futures have been showing a declining trend in the last few weeks in anticipation of a good crop in 2013, the industry feels that a poor inventory position will arrest the fall beyond a certain level.

Indian pepper futures prices, hovering around Rs 440 per kg at the beginning of the month, fell to Rs 382 on Thursday evening on NCDEX. The spot price stood at Rs 388 per kg in Kochi. “In fact, prices dropped to Rs 367 per kg a few days ago but have moved up in the last couple of days due to short selling. When the new crop comes in, prices could stabilise in the Rs 370- Rs 400 per kg range,’’ said Vedika Narvekar, senior research analyst of Angel Commodity Broking.

According to International Pepper Community (IPC), an inter governmental organisation of pepper producing countries, the new crop in India will come in January 2013 and that of Vietnam in February. Indian production is estimated at 55,000 tonne, about 30% higher than the output in 2011-12 . IPC executive director S Kannan said there will be a shortage of around 20,000 tonne in the carry-over stock for next year.