Black pepper exporters are likely to benefit in the coming days, as local prices of the commodity are on par with the international ones. Domestic prices softened by $350-400 a tonne and were at $6,350 a tonne. This has attracted overseas buyers and is likely to increase exports.
Vietnam offers Asta grade pepper at $6,250 a tonne, since a majority of its crop (around 72,000 tonnes) has been shipped. So, India might have the chance to fill in. According to exporters, India is now having a ‘reasonable price’ compared with pepper from other origins. For July shipments, Indonesia quotes $6,650 and the indicative price of Brazil is $6,300 a tonne.
Futures counters, which were trading at a hefty premium, crashed 10 per cent in the last four trading sessions. India was no way near the Vietnam counters till last week. Although futures crashed by $700 a tonne, the fall in spot was only $250. India, which was cut off from the rest of the origins, is slowly coming in line but exporters are not sure for how long it will last.
The Indian Mg-1 Asta quality on FoB-basis Kochi for June-July shipments is available at $6,350 a tonne and this looks interesting for overseas buyers, who have been neglecting India for the last three-four months.
There have been rumours about the rejection of Indian and Vietnamese pepper in many countries, especially in the US. These were used by some speculators to pull down Indian futures.
The crop in Indonesia this year will be low, according to various reports, and their Asta grade is the most expensive pepper, with a price tag of $6,650 a tonne.