With availability of pepper dropping to alarming levels, traders see a possible rally in the market. Speaking to FE, traders pointed out that supply has been affected and very little pepper reaches the terminal market. Small traders and farmers in upcountry markets like Adimali, Rajakkad, Batteri and Meenagadi are talking of further tightening of supply in the coming days.
?Some farmers may be holding marginal stocks, but it does not add to big volumes with production falling in the last few years,? Anand MV, a farmer from the Wayanad region, told FE. Erratic rains in the growing region and wilt disease are likely to bring down the 2008-09 crop, he added. Traders see the domestic demand increasing with winter and festival season. ?It is the peak consumption season in India,? a trader at the terminal market of Kochi said. Likewise, September-October is also the peak consumption season in the global market. Countries like the US and Europe build-up inventory for the December celebrations and holidays, starting from September. However, some traders feel that major buyers are long with Vietnam selling comparatively more pepper this year. Vietnam exported 58,000 tonne of pepper during January-July of the current year, according to reports coming from that country. It is stated that exports increased 15% in volume and 31.6% in value over the same period of last year. Likewise, Indonesia is also short having sold most of its crop.
Some traders interpret it differently saying that the major producers are short and the next crop in all origins are months away. “After exporting nearly 60,000 tonne Vietnam may have only limited quantity for export for the remaining part of the year.
