Pepper futures fall on weak exports; turmeric, jeera up

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MUMBAI: Indian pepper futures fell on Thursday on subdued demand from overseas buyers due to higher prices of the local produce in the global market and expectations of an increase in output.

As of 1010 GMT, the most-active February pepper contract on the National Commodity and Derivatives Exchange (NCDEX) fell 0.48 per cent to Rs 35,600 per 100 kg.

Pepper output is expected to be higher next year due to a likely good yields in the top producer state Kerala and Karnataka, traders said.

Overseas demand in pepper has been weak as Indian origin pepper is offered at a high premium over its competitors in the international market.

Spot pepper fell Rs 54 to Rs 38,776 per 100 kg in Kochi, a key market in Kerala.

TURMERIC

Turmeric futures rose on some fresh overseas enquiries and expectations of lower output though mounting stocks weighed.

The April turmeric contract on the NCDEX was up 0.06 percent at 6,694 rupees per 100 kg.

“Fresh export enquiries are coming for turmeric but demand is not that strong as expected because prices are quite high,” said Suresh Chowdhary, a trader from Nizamabad, a key market in Andhra Pradesh.

At Nizamabad, a key market in Andhra Pradesh, spot turmeric fell Rs 14.5 to Rs 5,352 per 100 kg.

Fresh supplies from the new season crop would arrive from January.

The area under turmeric cultivation is lower this year due to scant rainfall during the planting season and a shift in acreage to other crops, but higher carry-forward stocks are expected to keep supplies firm.

JEERA

Jeera futures rose due to fresh overseas enquiries though conducive weather conditions seen supporting sowing operations in the top producer Gujarat state weighed on sentiment.

The March jeera contract on the NCDEX was up 0.41 per cent at Rs 15,875 per 100 kg.

“Fresh enquiries are coming from Bangladesh for the Indian origin jeera. Export demand should rise in the coming days as supplies from Syria and Turkey are negligible in the global market,” said Samir Mahendra Shah, a trader from Unjha, a key spot market in Gujarat.

At Unjha, spot jeera edged down Rs 9.5 to Rs 15,137.5 per 100 kg.

India is the world’s top producer of jeera, or cumin seed, followed by Syria and Turkey.

Source: http://economictimes.indiatimes.com

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