The uncertainty over the pepper futures business ended after the Futures Markets Commission (FMC) granted the Indian Spices and Pepper Trade Association (IPSTA) license to conduct the pepper futures business. for six months from the July term.
Besides, at the initiative of the Chairman of the Spices Council, the FMC Chairman held a meeting in Mumbai with the IPSTA directors, in the presence of the Chairman of the Spices Council. It was agreed at the meeting that the current allowable price movement of Rs 500 would be increased to Rs 1,000, while that at NCDEX which is currently at 4% would be reduced to 2.5%, source IPSTA talk to Business Line.
The pepper futures business will continue for 6 months from the July term scheduled to start Monday at IPSTA and will hold a showcase.
Every year, at this time, farmers and local market traders often liquidate a portion of their holdings to fund their children’s schooling needs. Hence, causing a selling pressure that supports the price drop. In addition, there is a suspension of sales of this item in the state of Maharashtra.
The past week has seen a sharp decline in both futures and spot prices.
Spot prices for the week fell by Rs 890 to close at Rs 33,600 per quintal (equivalent to USD 6,122 per tonne) for bucket pepper and Rs 35,100 per quintal (equivalent to USD 6,395 per ton) for MG 1.
On the NCDEX exchange, the May contract fell Rs 890 to close at Rs 35,500 per quintal (equivalent to $6,468 per ton). ( 1 USD = 54.8855 Rupees )
Total turnover decreased by 506 tons to 197 tons. Open interest fell 148 tonnes to close at 60 tonnes on Saturday. During the week, 17 tons of pepper were allocated for delivery in May through the futures trading process.
Indian specialty pepper in the international market has decreased to 6,500 – 6,600 USD/ton and gradually become on par with other countries’ pepper prices. Therefore, expect some new demand for Malabar next week.
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