Pepper Prices Fall On Low Global Demand
Prices of black pepper have been slashed due to lower export demand. During the first week of October, the intake of export traders was much higher because of their global commitments. This reslulted in an increase of price level by Rs 300 per quintal in the first week of October.
Beacuse of the present slow down in global market the price for garbled variety has been slashed to Rs 7,700 per quintal and that of un-garbled variety is Rs 7,200.
Presently, international deamand is affected badly due to US attacks on Afganistan. The major importing nations like USA is watching the situation and not active in the market according to traders here.
The world market is expecting the new crop from Vietnam which will be coming to the market by next January.
During last season Vietnam had sold pepper even at a price tag 1200 $ per tonne and the importing nations expects a fall in price by January. Because of this effective demand much lower in the market. According to traders this is the main reason for the current fall in price.
Currently the offer price of Brazil is 1425- 1450 $ and that of Indonasia it is 1450- 1500 $. Indian parity is 1600 $. Market sources expects an almost steady market for the next two months and as per the indications there may be a a steep fall in prices by January next. The importers are ready to buy pepper at price tag of 1150 $ per tonne for shipment in January while the traders here are reluctant to sell below 1300 $. Hence no export contract is being carried out in the market. The importers are acting according to the indications in the market and they expect a much lower price level next year.