Pepper prices in both spot and futures markets recorded history by taking prices above Rs400 a kg on Tuesday on strong domestic demand amid tight supply, and thus became totally out priced in the international market.
The bull operators “who were in full control of the market were showing their might and were allegedly creating a lot of problems to their counterparts who are paying mark to market margins every,” trade sources said..
The gap between the Indian parity and that of other origins are much wider and hence there will be no buyers from overseas, market sources told Business Line. However, they said domestic demand is strong as the pipelines are empty and the availability as of now is very tight, they said adding the stock available on the exchange platform is at 2,012 tonnes for March, against an open interest for the month of 4,185 tonnes. Some 50 tonnes and 10 tonnes of fresh pepper respectively were reportedly deposited in the exchange warehouses in Kochi and Kozhikode, they said.
Capitalising on the tight situation, Karnataka dealers were reportedly offering pepper at Rs 400 a kg delivered at the doorsteps of upcountry buyers on a cash- and-carry basis. They have even raised the price to Rs 410 a kg. Meanwhile, some small quantities of high range pepper was traded here at Rs 408 a kg, while that of the plains at Rs 390-395 a kg, trade sources said.
The trade and the growers alleged that given the price advantage there is every possibility of imported pepper to enter the domestic market to depress prices.
March contract on the NCDEX shot up by Rs 1,610 to close at Rs 41,810 a quintal. April and May prices increased by Rs 1,630 a quintal each to close at Rs 42,275 and Rs 42,275.