Pepper futures on the rise

Falling imports seen as trigger

The Indian black pepper market seems to be in the recovery mode at last. Not only the May contract in futures market is on par with the global rates, there is also an increase in demand for the next year's delivery, thanks to reports of production being down in Vietnam the next season.

The change in the market has also caused a drop in imports, especially from Sri Lanka in the current month.

According to export traders, importers in NewYork are ready to take delivery at the rate of Rs 7,500 per quintal but traders are not willing to sell below Rs 8,200 in anticipation of a price increase in 2006. As the Indian price has come down, import has decreased considerably and hectic activity is going on in the Karnataka market.

Interestingly, India was the largest importer of Vietnam pepper in April and the total import stood at 1700 tonne. Traders told Business Standard that Vietnam was offering ASTA grade at a price tag of $1300 and Indian offer is $1525-1550.

According to traders, this would come down further. No other nations, including Brazil, are active in the global market and Indian black pepper is looking ahead for a bright period in 2006.