Kochi, Nov 21: Cash prices of black pepper crashed on the Kochi market following the IPC announcement that the global pepper production is seen up by nearby 5,000 tonnes during the next season starting January. The arrival of early crop in the terminal market here has also put downward pressure on the prices, trade sources here said.The IPC forecast had sent the pepper prices across the board on a tail spin with spot and futures closing lower by an average Rs 500 per quintal. Traders see prices to soften further and hit Rs 24,000 mark per quintal in the coming weeks.
According to the IPC figures, the total global production is poised to increase by 4964 tonnes to 217,164 tonnes in 2000 AD compared to 212,200 tonnes in 1999. The increase mainly stemmed from the increased planting and crop by some leading producing countries like Vietnam, Indonesia and Brazil.
"Prices had started falling since last week and the market is in the hands of bears", Kishir Shamji, president, Indian Pepper and Spices TradeAssociation has said.
He said the importers have already covered till December and are hoping the prices to soften since January when the new crop arrives in the market.
They said early Indian crop has already started arriving into the market putting further pressures on prices. Indian crop was early by 7-9 weeks this year.
Copyright © 1999 Indian Express Newspapers (Bombay) Ltd.