Pepper firms up, climbs to Rs 124/kg

KOCHI: Black pepper prices firmed up further during the week touching Rs 124 per kg on Monday. It stood at Rs 117 per kg a week ago. Speculative buying and the reports of a fall in global supplies have been lifting the prices in the past few weeks. The prices, which opened at Rs 117 per kg jumped up to Rs 121 per kg by January 27 and to Rs 124 on Monday.

Market sources said that the Vietnam crop this year would be delayed till March. Production is likely to be slightly lower than the last year���s level though it is projected to cross 1 lakh tones.Production from all other major origins including India is also likely to be lower than last year���s level. Fall is estimated to be around 15% globally.

In the domestic market, the arrivals into the main market like Kochi have slowed down due to the price rise as producers are holding on to stocks. Still, India remains one of the few origins where pepper is available.

Exporters, meanwhile, are worried that the continued price rise would affect export competitiveness.The speculative forces that are active in the market are also driving up prices, sources added. In this backdrop the Spices Board has released figures of pepper exports crossing 20,000 tonne in April to December period this year.