Pepper Sluggish on Weak Domestic, Export Demands.

Kochi: Pepper prices are weak due to sluggish demand in both domestic and export market. Traders said India has been out priced by almost $400 a tonne in the global market by Indonesia and Brazil and prices might come down by another Rs 4-5 per kg in the coming days unless domestic demand picks up.

Heavy rains in Vietnam and India, which could delay the harvest might also aid in the market recovery.

“Fresh arrivals from Brazil have commenced and are in full swing. Prices offered by them are lower than prices quoted by Indian traders in the international market,” Nalini Rao of Angel Commodities said, adding that overseas demand for Indian pepper is almost nil due to the wide disparity in price.

Pepper prices in the spot market declined on Friday to Rs 188 per kg from Rs 189.33 on Thursday. But, experts believe that prices might recover if demand picks up in the local market.

Faiyaz Hudani of Salasar Group, which trades in spices and edible oil, said “Demand should revive from November and prices would bounce back. All countries are done with harvesting and pressure would ease.” He expects harvest to be delayed in India helping in the recovery of price.

“The downward pressure in Indian market is also due to the fact that about 1,500 tonne of pepper is floating in the market after its expiry from the warehouse,” Hudani said. He feels that traders and farmers would not part with their stocks at low prices.

Jojan Malayil of Kochi based Bafna Enterprises feels that the market could fall by another Rs 4-5 per kg before finding support from domestic demand. Currently, domestic trade and exports are almost nil. He expects domestic demand to come in shortly and does not expect Brazil and Indonesia to lower its price further.

“Vietnam has exported almost 1,20,000 tonne and would sell the remaining before the new crop comes. The new crop could be delayed and not reach the market before late February,” Malayil said. He expects the delay in Indian crop also to aid the market from November. In a recent report, the Agricultural Market Intelligence Centre (AMIC) of Kerala Agricultural University said that supplies globally are down due to erratic weather, but reported high by people with vested interests.

“Demand has been affected by the heavy rains and would revive soon,” K Satheesh Babu of AMIC said and added...

Source : financialexpress.com