Pepper's turning too hot for buyers
After a prolonged period of depressed sentiments, pepper prices have started inching upwards on account of better buying support in the export market and tight supply conditions.
By S Sanandakumar, TNN |
KOCHI: Are the Indian pepper prices turning bullish? After a prolonged period of depressed sentiments, pepper prices have started inching upwards on account of better buying support in the export market and tight supply conditions.
Prices moved up to Rs 75 per kg for ungarbled and Rs 79 per kg for garbled pepper on Wednesday. One month ago, the prices of garbled pepper stood at Rs 69 per kg, while ungarbled pepper prices stood at Rs 65 per kg. “Sentiments have been lifted by a few export orders,” Kishor Shamji, an exporter said.
Indian pepper is now quoted at around $1,825 per tonne to $1,850 in the international market. For the first time in the recent past, Vietnam is quoting a price higher than that of India in the international market. Indian prices have moved up further due to the fact that Vietnam is keeping out of the market since it has already sold nearly 60% of its production.
“Till the Indonesian supply hits the market India is the only supplier,” Mr Shamji said. The Indonesian crop, which is likely to reach the market within two weeks from now on, is estimated to be lower by almost 20%. The Brazilian crop will reach the market only in October.
The price signals from the futures market also show that the pepper prices will be bullish in the coming days. The price on the National Multi Commodity Exchange (NMCE) for November stood at Rs 86 per kg and for January Rs 89.9 per kg.
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Meanwhile, tight supply conditions prevailed in the domestic market as prices moved up. Import of pepper is also likely to be lower on account of higher prices in the global market.Too busy to trade in stocks? Invest in Mutual Funds with ET Money!
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