Pepper exports surge on US demand

Spurt in overseas demand, especially from the US, has helped lift fortunes of pepper export in the last couple of days, dealers said on Thursday.

Exports to the tune of nearly 2,000 tonnes have taken place in Kochi in the past one week for delivery in April and beyond, they said.

"Demand from US buyers is active and we hope it will continue for some more time," a leading exporter in Kochi said.

"We have stuck a deal with US buyers for 500 tonnes on Tuesday," he said.

Prices of Indian pepper staying competitive compared with countries such as Indonesia and Brazil has helped to bring overseas buyers here, dealers said.

Lack of activity in Vietnam pepper market due to lunar new-year holidays also brought buyers to India, they said.

Although markets in Vietnam have re-opened after the holidays, most dealers here were of the view activity will pick up only by early next week.

Indian exporters have sold pepper at $3,700-3,800 (Rs 147,297-151,308) a tonne that is nearly at a par with rates prevailing in Indonesia, they said.

Spurt in export demand is likely to push up pepper prices in domestic spot market, dealers said.

Forward Markets Commission deciding to raise open interest positions limits to 300 tonnes from 175 tonnes effective from February 21 may push up the commodity in the futures market, they said.

Benchmark March contract on the National Commodity and Derivatives Exchange rose to Rs 13,955 a quintal compared with Rs 13,808 on Tuesday.

According to Spices Board, India exported 27,000 tonnes pepper worth Rs 391 crore in the first nine months of the current financial year compared with 21,780 tonnes worth Rs 220 crore a year ago.

Price of Malabar Grade pepper in New York on week ending February 1 was at$3.97 a kg compared with $2.99 in same period last year.