Pepper Future Market Sees Sharp Fall

Kochi: Pepper futures market saw a sharp decline due to pessimistic activities by cartels last week. The prices declined by Rs 1,133 to Rs 1,513 a quintal. Turnover on NCDEX increased 48,711 tonnes to 2,18,555 tonnes, while on NMCE it was up 3,191 tonnes to 19,819 tonnes. Open interest on NCDEX during the week declined 942 tonnes to 25,478 tonnes, while on NMCE it increased by 115 tonnes to 3,314 tonnes. Spot prices also declined in tandem with the futures market trend by Rs 400 a quintal during the week to Rs 13,800 (un-garbled) and Rs 14,400 (MG 1) on May 26. Tight supply position seems to prevail. As long as Indian prices are competitive in the international market there is potential to infuse in the commodity. According to International Pepper Community (IPC) report (May 21-25) for the week the overall market was quiet with local prices at most markets reporting a slump ranging from one to two per cent and f.o.b prices registering almost flat levels. At Kuching, local price is down by 2 per cent to close at $3,107 a tonne, while f.o.b price remained unchanged at $4,200 a tonne. Local price at Kucing was down by 3 per cent over the week to close at $4,320 a tonne while FOB price remained unchanged at $5,200 a tonne.