Date:18/07/2006 URL: http://www.thehindubusinessline.com/2006/07/18/stories/2006071800191300.htm

Back Pepper futures soar on tight supply

G.K. Nair

Kochi , July 17

Tight supply position in the world pepper market and the rupee going down to a three-year low against the dollar have placed the Indian pepper at an advantageous position raising the possibility of more exports in the coming days.

These factors coupled with the reported earthquake triggering tsunami in Indonesia, where harvesting of pepper is underway, have influenced the pepper futures market, which has soared by Rs 175 to Rs 205 a quintal on Monday.

July contract was up by Rs 185 a quintal on NCDEX to close at Rs 7,895 from Rs 7,710 on last Saturday. On NMCE, it increased by Rs 142 a quintal to close at Rs 8,025 from Rs 7,883.

The open interest on NCDEX on Monday was 18,535 tonnes against 17,992 tonnes while on NMCE, it was 2,926 tonnes (2,992 tonnes). The outstanding position for July and August was 2,717 tonnes and 7,333 tonnes respectively.

In tandem with the rise in futures prices, spot prices also increased by Rs 100 a quintal on Monday to Rs 7,450 (un-garbled) and Rs 7,850 (MG 1) a quintal.