| Traders said the issue of collection of tax where sales to exporters are concerned is yet to be sorted out despite the state government's assurance. |
| State tax officials argue that four per cent tax in the case of inter-state trading is applicable for the export trade too. Many export traders had already paid the tax in order to avoid a deadlock over the issue. |
| Traders said the market especially, the spot market, came to standsitll over the issue. |
| Meanwhile, there was a fall in the prices of pepper in the global market too due lack of demand. Heavy rain in Vietnam also affected the sentiments of the market and traders there were forced to reduce the prices by $60 to $80 a tonne. |
| Last week the Vietnamese traders had increased the prices of 500 gm/litre to $1260 but the US and European buyers were not ready to buy even at the level of $1,180. For Vietnam, India is the largest export market. |
| Howerver, despite a poor demand, they are offering 500 gm/litre pepper to Indian buyers at $1,200. Prices of 550 gm/litre is $1260 and the ASTA grade is currently being offered at $1360. |
| Market experts predict a further crash in the prices as 60 per cent of the harvesting is already over in Vietnam. Brazilian ASTA grade are being offered at $1,350 and Indonesian ASTA grade is priced at $1425. |
| Since, both are being offered to the Indian traders at level of $1650, this parity is lowering the possibility of exports. |
| Meanwhile, the Kerala government has decided to sanction an additional Rs 50 crore for the market intervension operation of Kerala State Co-operative Marketing Federation. |
| Therefore, the mustard growers are now pinning their hopes on the procurement by the government. |
| Global fall too |
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