Black pepper futures gained sharply on the back of strong demand against the tight availability. The trade sources said that the squeeze in supplies in the spot market, diminishing stocks at spot markets, pick up in spot demand supported the upside in pepper prices at futures trade.
According to IPCs 2011 projection, India is expected to produce 48,000 tonnes , down 2,000 tonnes from the last year. Pepper production in Indonesia and Brazil are projected lower while in Vietnam, the output projected steady this year.
Black pepper gained sharply on the back of strong demand against the tight availability. MG-1 ended up by Rs. 300 to Rs. 24,700 in kochi spot market. NCDEX April pepper ended the last session higher by 1.50% at Rs. 25730 after hitting new high of Rs. 25929 and the open interest dipped 5% to 6952 tonnes. April contract is likely to trade in the range of Rs.25960-25510.