Mumbai: India’s pepper futures opened down on Wednesday, 15 October, as traders ditched some positions on lower exports due to higher prices in India compared to other competing countries such as Vietnam and Brazil, analysts said.
India shipped 11,250 tonnes of pepper during April-August, a fall of 28% compared to the same period a year earlier.
At 10:29am, the benchmark November pepper on the National Commodity and Derivatives Exchange of India (NCDEX) was down 0.55% at Rs12,870 per 100 kg.
However, tight supply and a slight recovery in the domestic demand were capping the losses.
Indians will celebrate Diwali, a major Hindu festival in the month-end, when demand for spices usually increases.
Jeera futures dropped on a likely rise in acreage due to higher prices compared to last year and on good rainfall in main growing region, analysts said.
At 10:30am, the benchmark November contract was down 0.93% at Rs10,200 per 100 kg.
However, a likely rise in export demand due to lower crop in other major producing countries was capping the losses.
Turmeric futures opened lower tracking weakness in the spot market, where festive demand was not picking up at the expected pace, analysts said.
At 10:30am, the benchmark December contract was down 0.93% at Rs3,528 per 100 kg.
However, buying at lower levels was capping the losses.
Chilli futures extended gains on a recovery in domestic and overseas demand and an estimated drop in the acreage in 2008-09, analysts said.
Chilli acreage in 2008/09 may fall by up to 10% as some farmers have diverted area under the spice to the more lucrative cotton, traders and analysts said last month.
At 10:31am, the December contract was up 1.14% at Rs5,690 per 100 kg.