Pepper futures up on tight supply, lower global output

Extending yesterday's gains, pepper futures rose by another 0.33 per cent to Rs 23,428 per quintal today amid a supply crunch in the domestic market and a dip in global production of the spice.

At the National Commodity and Derivatives Exchange, pepper for March contract delivery gained Rs 77, or 0.33 per cent, to Rs 23,428 per quintal, with an open interest in 306 lots.

Consignments of the spice for January delivery also edged higher by Rs 64, or 0.28 per cent, to Rs 22,900 per quintal, with an open interest in 10,438 lots. Similarly, February contract pepper moved up by Rs 52 -- or 0.22 per cent -- to Rs 23,180 per quintal, with an open interest in 2,108 lots.

Analysts attributed pepper's continued rise in the futures market to the poor supply situation, which has resulted in existing stocks being depleted, besides a decline in global output.