KOCHI: With demand from the main importing countries about to pick up in the coming weeks, domestic exporters of black pepper are hopeful of increasing their shipments. Though the offer prices of some of the competing origins are slightly lower at present, the tight supply might keep prices firm.
A rise in prices in the main points of origin has brightened the prospects of black pepper exporters a week ago. Though there has been a fluctuation in the international prices since then, domestic exporters are hopeful that tight supply position would keep prices at comparable levels.
The Indian offer price for ASTA grade pepper is $3,250 per tonne. Though the Indonesian prices were higher till a few days back, it has since then dropped the price to $2,950 per tonne, said trade sources here.
Vietnam, the leading supplier of pepper in the world market today, is selling at $3,350 per tonne. Market sources said Vietnam has exported out almost 90,000-1 lakh tonnes in the current year, which is the main reason for prices to rise in that country.
A large part of the Indonesian crop remained sold out in the market, making the supply conditions tight in the global market.
Supplies from Brazil, estimated around 35,000 tonnes, would gain momentum in the current month. The Brazilian offer price is currently $2,850 per tonne. After the Brazilian crop, the markets would have to wait till mid-January for the stocks to be replenished by fresh supplies from India.
Tight supply conditions in the domestic market had led the spot prices to rise from Rs 133 per kg on August 1 to Rs 153 per kg on August 22. On Friday, prices stood at Rs 149 per kg. In the futures market, the September contract was being traded at Rs 150.18 per kg on Thursday.
Exporters are hopeful that international price parity for pepper would prompt the importing countries to buy from India. "Prospects are good for exporters, though prices are fluctuating," said a spokesman of the export sector, adding that the supplies with domestic exchanges have improved.
Source : The Economic Times