Kochi: Pepper futures market declined on Aug 29 on pessimistic operations and the September contract declined below the spot prices. September contract fell by Rs 115 a quintal to close at Rs 13,943, much below the spot price of Rs 14,200 of MG 1. The decline in other contracts was from Rs 38 to Rs 117 a quintal on NCDEX. Total turnover increased by 1,920 tonnes to 5,903 tonnes while total open interest fell by 232 tonnes to 19,874 tonnes. September declined by 444 tonnes while October and November moved up by 147 tonnes and 55 tonnes respectively.
Exporters were also jumping away from taking delivery because of fear of the quality of the material. In fact, at a meeting organized by the FMC in Bangalore early this week, dealers and farmers of sugar, pepper and rubber and some chamber of commerce people asked the Regulator to introduce some mechanism to arrest this manipulation of the market apart from putting in some fool-proof mechanism to ensure quality of the material delivered. Purchasers in the overseas markets are also loosing confidence in the futures market.
Exporters were also jumping away from taking delivery because of fear of the quality of the material. In fact, at a meeting organized by the FMC in Bangalore early this week, dealers and farmers of sugar, pepper and rubber and some chamber of commerce people asked the Regulator to introduce some mechanism to arrest this manipulation of the market apart from putting in some fool-proof mechanism to ensure quality of the material delivered. Purchasers in the overseas markets are also loosing confidence in the futures market.
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