VBN March 7th 2010
Limited arrival of pepper from producing regions and poor
availability in the terminal markets have prompted Indian
exporters to source their requirement from Vietnam.
Pepper prices in the futures market have dropped because of good
arrival in the spot markets and profit booking by traders, but
in reality supplies in the physical markets in down, traders
said.Either farmers are holding on their stocks or the
supplies are being met from reserves, P Nandakumar, a trade
consultant based in Kochi told FE.
Pepper exports in January were estimated to be around 1,500
tonne, down 28.57 percent compared to the same month of last
year. Exports in December stood at 1,750 tonne, down 32 percent
from last year.
Weak trend in the global markets also pulled down exports.
Pepper market is likely to overcome the selling pressure and
firm up towards the end of March based on strong domestic demand
and low supplies, says a study by the Agricultural Market
Intelligence Centre (AMIC) of Kerala Agricultural University.
Arrival pressure from India and Vietnam coupled with the
reluctance of buyers to commit has put pressure on the spot and
futures market, says K Satheesh Babu of AMIC.
“Exports should have been naturally good during the harvest
season. Other producers are not active in the market. But Indian
prices are still higher than Vietnam indicating a low supplies
or hoarding,” Nandakumar.
According to the projections of the Jakarta-based
International Pepper Community, global pepper production is
expected to rise by 3 percent in 2010 to 290,742 tonne from
281,974 tonne last year. However, the carryover stock of pepper
is estimated to slip 32 percent in 2010 to 79,124 tonne from
116,325 tonne in 2009, sources said. (Express India)
That´s from Vietnam Business News...
