New Delhi, Aug 24: Prices for pepper originating from India increased by six per cent last week compared with prices in the previous week as traders found it hard to source their requirements, International Pepper Community (IPC) has said.``Pepper market remained firm and traders at sources struggled to collect material to meet immediate commitment,'' Jakarta-based IPC said in its newly-begun market review.
Prices for Malabar grade I pepper originating from Kochi was in line with the high prices ranging in the local market.
``Malabar black was traded in the range of Rs 202 to Rs 208 per kg on an average six per cent higher to the last week's level,'' it said.
The price rise was in view of the inventory being limited as at least 30,000 tonnes had been shipped from Kochi.
Pepper trading witnessed a firm trend in the global market though prices did not witness increase as from India.
``At main trading centres of Europe, Singapore and New York, pepper trade was quiet with limited activity. However,spot prices except Muntok white and Singapore and New York moved up around 2-3 per cent,'' IPC said.
IPC said offers for lampung black pepper fluctuated at high range but realisation of transaction was limited as requirement was for short-term covering.
But exporters with commitments this month were facing difficulties to secure raw material.
``Arrival in local market is very slow as crop this year is much lower compared with last year's crop,'' the report said of Indonesia pepper.
Prices of both black and white pepper increased significantly and in dollar terms, the rise was 7.2 per cent and six per cent respectively, it said.
Indonesian exporters were facing the additional problem of depreciation of local currency against the US dollar followed by increased in interest rates.
Only India and Brazil have the potential to supply at the current juncture.
Cropping in Brazil is expected to start this month but Brazilian sellers were still cautious in making commitments and were watching marketdevelopment in expectation of better prices.
Indian industry sources said pepper prices were firm from Kochi as growers were holding on to their stocks, especially in view of the current year crop being hit by disease and extended monsoon.
Copyright © 1999 Indian Express Newspapers (Bombay) Ltd.