Prices in both the domestic and international segments of the IPSTA moved in tandem and volume surged to record high on Friday. While the prices of spot pepper closed the week on Friday at Rs 26,600 per quintal, gaining a whopping Rs 1,100 per quintal from the closing quote on the day of opening on Monday, November futures gained a further 4.77 per cent to close at Rs 27,450 per quintal. December contracts gained the most during the week with a gain of 5.42 per cent to Rs 28,200 up from Rs 26,750 per quintal and January contracts closed at Rs 27,525 per quintal.

The volume traded during the week was also higher with the total quantity traded on Friday hitting a record high of 11,425 quintals (including all contracts and spot deals).

In the international segment also the price trend was bullish and the prices moved almost in tandem with the domestic market. Following the higher price band, prices in international market ruled slightly higher compared to the domestic segment.

Meanwhile, traders and business circles here said that the Indian pepper trading community has not so far benefitted from the bullish trend in pepper prices persisting for the past five weeks. They said not a single transaction has taken place during the past three weeks at the ruling prices. "No business at parity was taken place during the last three weeks from India", IPSTA president Kishor Shamji said.

He said some re-exporters in major trading centres like Singapore are undercutting Indian pepper and selling Malabar pepper in the international market at lower levels.

He said, the bull run in the market has put the exporters in a tight spot as many of them has sold at a discount several months back. "They have to buy now at higher levels to cover their positions", he said. He said, the Indian market, the only futures market for black pepper in the world, always moved ahead of international market in both booms and bust. In order to have a better price discovery mechanism the bourse management has approached the Foreward Markets' Commission seeking permission to open two more contracts beyond January. "Six futures contracts operating simultaneously will help the exporters and traders to get better price signals", he said. A prominent exporter and former president of IPSTA, Sanjay Mariwala said that there is nothing wrong with the current bullish trend in the Indian market. "India is the only source of pepper available in the international market till February and naturally the demand for Indian pepper is high leading to a consequent increase in prices", he said. He said itis those exporters who have sold at a discount in advance are now crying foul at the current surge in prices.