Indonesia and Brazil have also hiked their rates as they did not see the market declining. The strategy of Vietnam has supported the market and it is likely to stabilize now after the correction, Jojan Malayil of Kochi based Bafna Enterprises said. Some countries like Middle east and Russia are likely to come to the market as they are short. We may see the market stabilising at this level, he added.
Vedika Narvekar of Angel Broking feels that the domestic market has corrected and it may move up in the short-run on domestic buying and the farmers strategy of holding back at lower levels. Prices also corrected due to good rainfall in pepper growing regions in Kerala and Karnataka over the last few days. Good supplies from Indonesia have also pressurised the prices. Many countries are importing pepper from Brazil and Indonesia than from India due to lower rates, she said. Angel Broking reports that demand for Indian pepper in the global markets is low due to higher prices.
Pressure for money is there for Ramadan and Indonesia was selling at lower levels. After the festival they normally hike the market, P Nandakumar, a trade consultant from Kochi said.