In the last week, pepper prices in both the futures and spot markets have tended to increase despite limited activity due to tight supply and lack of buying interest.
Although the supply lines for the domestic market did not have any activity as buyers were eagerly waiting and anticipating the release of about 800 tons. pepper is being kept at a warehouse in Saharanpur district (Uttar Pradesh state). Likewise, some buyers in the market believe that there are some goods sealed at warehouses in Kochi that will be released in the near future once they are inspected by the food safety authorities at the warehouses. designated laboratory. This has created a bleak outlook in some parts of the market.
Last week, stock availability was tight because of the Ramadan holidays and incessant rains, floods and landslides disrupted cargo shipments from the region’s growing high mountains.
As a result, the supply has plummeted. Agents in Tamil Nadu have been actively buying from Kerala. The districts of Erode, Cumbum, Theni and Gudalur have become the main pepper trade centers in Tamil Nadu because of tax benefits.
Many local merchants have moved their operations to Karnataka due to the volume pepper available there.
“Exports are controlled remotely due to the high price of Malabar pepper, while there is a shortage of real goods,” a market source told Reuters. Business Line.
The IPSTA source said: “In accordance with the order permitted by the Futures Market Commission (FMC), we have implemented daily price fluctuations of Rs 500 – 1,000, effective from July 31, and profit has been raised to 20,000 tons.” Although the volume of business during the weekend is negligible,
During the week, all active contracts on the NMCE exchange rose.
The August contract and the September contract increased Rs 508 and Rs 644 to Rs 41,700 per quintal and Rs 42,100 per quintal (equivalent to 6,851 USD/ton and 6,917 USD/ton). ( 1 USD = 60.8673 Rupees )
Total turnover decreased by 110 tons to 154 tons. Total open interest decreased by 12 tons to 75 tons.
Spot prices rose Rs 100 to reference at Rs 39,100/quintal ($6,424/ton) for bucket pepper and Rs 41,100/quintal ($6,752/ton) for MG1.
Export demand is not clear while previous contracts also seem to have slowed down. In the international market, everyone has turned to buy from Sri Lanka. Anticipating Brazil’s new crop to be available in September, Indonesia has already started offering it, according to a foreign report.
Europe entered the summer break last week.
Spot Indian pepper prices at the end of the week stood at $6,975 per tonne (c&f) for Europe and $7,225 per tonne (c&f) for the US, and are still higher than prices from other countries.
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