Pepper prices rose sharply in the first days of February due to good purchasing power amid continued tight supply. Pepper farmers hold stock and expect higher prices while demand is at its peak from winter to March.
>> Indian pepper market: Pepper prices continue to decline when the new crop is harvested
Traders buying directly from growers’ doorsteps and from local market dealers in Idukki district on a cash basis and self-delivery are rarely seen in the futures market.
On Tuesday, February 3, only 15 tons of pepper arrived and was traded at Rs 600-610/kg. Meanwhile, processing factories are running around looking for goods to cover contracts.
The monthly consumption demand of the Indian domestic market is in the range of 4,000-5,000 tons, so the milled pepper industry usually focuses on activities during this time to avoid losses, market sources said on Business Line.
Contrary to traders’ expectations, the market supply has become tight, pushing prices up.
On the IPSTA Spices Association Floor, all three active contracts remain unchanged. Specifically, the February, March and April contracts were at Rs 65,337 per quintal, Rs 59,237 per quintal, and Rs 55,136 per quintal (equivalent to 10,582 USD/ton, 9,594 USD/ton and 8,930 USD/ton).
Spot pepper prices remained stable at Rs 62,000/quintal ($10,042/ton) for bucket pepper and at Rs 65,000/quintal ($10,528/ton) for pre-processed pepper.
Export price of Indian pepper increased slightly to 10,800 USD/ton (c&f) for fast delivery.
*According to the report of Agriculture and Rural Development, the export volume of pepper in January 2015 is estimated at 9 thousand tons, with a value of 49 million USD, down 11.6% in volume and 28.6% in price. value compared with the same period in 2014. The average export price of pepper in 2014 was estimated at US$7,744/ton, up 11.5% compared to 2013. The US, Singapore, the United Arab Emirates, India and the Netherlands Lan is Vietnam’s 5 largest markets in 2014, accounting for nearly 50% of the total export value of this item.
*(Exchange rate 1 USD = 61.7416 Rupees)
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