Limited arrivals in recent weeks have kept supply limited, but sluggish domestic and export demand has kept the prices in a range, Olam Spices & Vegetable Ingredients observed on August 17.
So far, spike and berry formation has been good across growing areas of Kerala and Karnataka with adequate rainfall and no crop damage information has come to light.
Recent improved global production forecasts from the International Pepper Community have affected the bullish momentum.
“Arrivals pressure in other origins like Indonesia and Malaysia and expected arrivals in Brazil is likely to keep the export demand low,” Olam Spices predicted.
The company finds that the hand to mouth stock situation, stable price levels in other origins and four month gap until new crop arrivals are lending support to current prices. “Indian prices are also expected to trade range bound to positive for the near term on renewed domestic and selective selling by farmers,” it added.
Price indications were at INR550-570 (USD8.17-8.46) per tonne ex-Cochin for ungarbled pepper of fair, average quality and 550-570 g/l.