Pepper rises 1.70% on lower output

Rising demand in spot market pushed prices higher

Pepper prices rose sharply by Rs 645, or 1.70%, to Rs 38,670 per quintal in futures trade today as speculators created positions, driven by expectations of lower output this season.

Also, firming trend in spot markets on rising demand also influenced pepper futures prices.

At the National Commodity and Derivatives Exchange, pepper for delivery in June rose by Rs 645, or 1.70%, to Rs 38,670 per quintal with an open interest of 2,800 lots.

The May contract moved up by Rs 535, or 1.43%, to Rs 37,955 per quintal in 2766 lots.

Analysts attributed the sharp rise in pepper futures to speculations of a lower output this season against pick-up in demand.