Pepper continues to decline on selling pressure

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KOCHI, MARCH 6:

The pepper market continued its downtrend on Wednesday on reportedly higher selling pressure in Karnataka coupled with bearish activities.

Consequently all the active contracts closed below the previous day’s close.

Karnataka pepper is being moved into Tamil Nadu where no tax is levied while dealers from Wayanad are bringing it into Kerala, they said.

Karnataka dealers were offering at Rs 345 a kg delivered anywhere in India on cash and carry terms evading tax.

The material is allegedly of 485-490 GL bulk density but looks bolder and hence liked by dealers from Jharkhand, Bihar, Odisha, West Bengal and some parts of Madhya Pradesh where it is sold in measure and not by weighing.

On the spot, 35 tonnes of fresh pepper arrived and were traded between Rs 345 and Rs 350 and Rs 355 a kg depending upon the area of production and bulk density.

On the NCDEX, March series decreased by Rs 225 to Rs 36,040 a quintal while April dropped by Rs 205 to Rs 34,510. May remained unchanged at Rs 33,815. Total turn over fell by 1,045 tonnes to 1,704 tonnes. Total open interest increased by 255 tonnes to 3,414 tonnes showing good additional buying.

Spot prices, in tandem with the futures market, decreased by Rs 300 a quintal to close at Rs 35,100 (ungarbled) and Rs 36,600 (MG 1).

Indian parity in the international market was at $6,950 a tonne (c&f) for March shipment while April stood at $6,750 and May at $6,600.

Source: Business Line

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