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May 23, 2012, 01.48 PM IST | Source: Moneycontrol.com

Geojit Comtrade`s view on Pepper, Jeera, Turmeric

Geojit Comtrade has come out with its report on Pepper, Jeera and Turmeric.

Geojit Comtrade has come out with its report on Pepper, Jeera and Turmeric.

Pepper futures are expected to trade higher due to rise in demand amid tight supply situation. Weakness in the rupee against dollar is also likely to probe the export demand. The daily arrivals in Kochi were around 28 tonnes and the spot price for garbled pepper increased to Rs.39700 per 100 kg. In the international market, Indian parity was offered at around $7850 per tonne. Meanwhile, the availability of Vietnam variety at a competitive rate is likely to pressurize the prices. According to Vietnam Pepper Association, Vietnam’s pepper exports are projected to earn US$850-900 million by the end of 2012. The price for pepper in the June contract in Singapore Mercantile Exchange ended at $6450 per tonne.

Jeera futures may rise on strong export demand along with limited arrivals in major spot markets. Decline in daily arrivals are expected to support the price up trend. Jeera arrivals in Unjha declined to 13000 bags (1bag=55kg) from 18000 bags reported on previous day. The spice fetched Rs.13400 per 100kg. According to report from traders, around 8 lakh bags of jeera have already been exported from local mandies, while further exports of around 5 lakh bags are expected in the coming days. Fall in production prospects by Syria and Turkey led to increase in demand from overseas countries. According to sources, jeera acreage in Syria is likely to fall by 30 percent in 2012.

Turmeric prices dropped due to ample supply in the spot market. Arrivals in Erode and Nizamabad stood steady compared to previous day at 15000 bags and 5000 bags, respectively. However, the price may rise on reports that Karnataka government is considering extending the turmeric market intervention scheme that is otherwise scheduled to end by May 31. The turmeric market intervention scheme was introduced in Karnataka in April to support farmers after prices declined to around Rs.3300 per 100 kg in April from Rs.9000 a year ago. The response for the scheme has been lukewarm due to adherence to stringent quality norms laid down by the State's horticulture department.

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