Pepper rise on thin supply, deficient monsoon

NCDEX pepper up 1.2% on cues

Pepper prices moved up by Rs 510 to Rs 42,340 per quintal in futures trade today largely after speculators created huge positions amid thin supplies in the spot markets and subdued rains in major producing regions.

At the National Commodity and Derivatives Exchange, pepper for delivery in July spurted by Rs 510, or 1.22%, to Rs 42,340 per quintal, with an open interest of 1,612 lots.

Likewise, the spice for delivery in August gained Rs 455, or 1.08%, to Rs 42,750 per quintal, with an open interest of 3,437.

Analysts said the rise in pepper futures prices was due to fall in supplies in the market and weak rainfall in the major pepper cultivating regions which could hurt the growth of the crop.

Besides, rising domestic and export demand too influenced pepper futures, they said.