NCDEX Pepper Settles Up On Export Demand .

MUMBAI (Commodity Online): Pepper futures gained on reports of strong export demand and tight supply in the domestic market.

Pepper for the August delivery on NCDEX touched the high of Rs 29650, up Rs 678 or 2.34% over the last close. The contract is currently hovering at Rs 29425, up Rs 453 or 1.56% over the last close. The open interest added 2.21% to 9931 tonnes, indicating fresh buying.

As per the latest release from the Spices Board of India, during April-June 2011, a total quantity of 5,750 tonnes of pepper valued Rs.150.38 crores have been exported as against 4,750 tonnes valued Rs.79.96 crores of last year. The unit value of pepper has increased from Rs.168.35 per kg in Apr-June 2010 to Rs.261.52 per kg during April-June 2011.

Forex revenue from exports of spices and spices products from India during April-June 2011 registered a rise of 21 percent while the tonnage declined by 26 percent. A total of 116,900 tonnes of spices and spice products valued Rs.1885.24 crores (US$421.55 Million) has been exported during April- June 2011 as against 157,850 tonnes valued Rs. 1560.47 crores (US$ 342.28 Million) in 2010. In dollar terms, the increase in revenue is 23 percent.

According to the International Pepper Community, world pepper output this year will fall by about 6,500 tonnes against 2010 to 310,000 tonnes due to unfavorable weather conditions and pests in several producing countries.

According to estimation by Spices Board, production of pepper in India in 2010-11 is projected to be 48 thousand tonnes over 50 thousand tonnes last year. However, there are expectations that this estimate would be lowered further on account of the disease attacks and erratic rainfall in the major growing areas particularly Kerala and Karnataka. According to the market sources, India's yearly demand is around 50,000 tonnes for its domestic consumption.

Source : commodityonline.com