Liquidation is leading to fall of pepper market and further leading to the closure of all active contracts below the previous day’s closing and further affecting Indian spice traders.
The cartel (which is holding about 7,800 tonnes of pepper) the filed a complaint, that the quality of the material is not up-to the mark and not advisable for human consumption thus leading to the sealing of the warehouses.
wholesale spice suppliers alleged that the cartel does not seem to be wanting deliveries to take place. Madhya Pradesh, Jharkhand, Bihar havethe highest domestic demands.
With the advent of new pepper at the terminal market has not elevated as the material is moving out to Tamil Nadu a place which has a good demand.The dealers claim to meet the demands of the interiors, pepper is moved out from Erode to north Indian markets.
December contract on the NCDEX slipped by Rs 5 to close at Rs 39,305 a quintal. February and March decreased by Rs 260 and Rs 515 respectively a quintal to close at Rs 35,510 and Rs 35,045 a quintal.
Total turnover fell by 1,216 tonnes to close at 1,528 tonnes. Total open interest dropped by 291 tonnes to close at 3,058 tonnes.
December open interest decreased by 373 tonnes to close at 63 tonnes showing clear liquidation while that of Feb and Mar increased by 62 tonnes and 9 tonnes indicating switching over.
Spot prices continued to remain at Rs 37,200 (ungarbled) and Rs38,700 (MG1) a quintal on limited activities. Indian parity in the international market was at $7,500 a tonne (c&f) Europe and $7,800 a tonne (c&f) for the US and remained out priced, they added.