The country?s pepper market is likely to remain firm due to concerns on supply even as the global market eases with Vietnam lowering prices. Lesser rains in the pepper growing regions and supply shortage are propping up the domestic market with stakeholders turning bullish in the short-run. The carry-over stocks in the country from 2007-08 is also said to be low and with the 2008-09 crop pegged below 50,000 tonne, the availability is seen lower when compared to last year.
According to the Spices Board, India has already exported above 7,000 tonne in Q1 alone. Faiyaz Hudani at Kotak Commodity Services said that the market could touch Rs 150 per kg in the short run given the strong domestic demand.
?Up- country demand is likely to increase with the arrival of winter and festivals. Stocks with the accredited warehouses is lower by 30-40% when compared to the previous year,? he said adding that the ?availability in the physical market is also low and with concerns on the new crop, farmers are likely to hold back some stuff for better realisation.?
Interestingly the strong domestic demand has virtually de-coupled the Indian market from the rest of the market. The global market is showing signs of easing up with Vietnam lowering the rates.