Pepper futures rise on spot demand

Buoyed by pick up in domestic demand, pepper prices recovered by Rs 26, or 0.12 per cent, to Rs 20,674 per 100 kg in futures trade today. However, a decline in overseas demand, restricted gains.

At the National Commodity and Derivatives Exchange platform, pepper for delivery in September contract traded Rs 26 higher, or 0.12 per cent, at Rs 20,674 per quintal, with an open interest in 5,499 lots. 

In a similar fashion, the spice for delivery in August contract also gained Rs 21, or 0.10 per cent, to Rs 20,612 per 100 kg, with an open interest of 12,942 lots.

Spot pepper gained by Rs 67 at Rs 20,614 per 100 kg in Kochi, a major trading hub in Kerala.

Analysts said strong domestic demand in spot markets mainly led to a rise in pepper prices at futures market here but drop in overseas demand restricted gains. 

Meanwhile, country's pepper exports fell 5 per cent to 4,650 tonnes in April-June 2010, from the same period a year ago.