Trade sources said that pepper prices are under pressure following heavy selling by Malaysia and Indonesia in the major markets. "Market remained in the hands of buyers with sellers had little opportunity to bargain", a Kochi-based exporter said. The situation may worse in the coming days if the trend continued, he added.

Besides selling pressure, uncertainty over the future contracts in IPSTA has also cast its shadow over the trading community.

FMC has denied permission for future contracts beyond August following the exchange's failures to put in place a guarantee system.