Pepper futures to crash more and India will come in line with International Market

Mumbai /15th Sept 2010 04 45 HRS




The Black pepper futures which were put astronomically high by speculators started falling as expected as the maturity of nearmonth september contract is approaching on next Monday.

The speculators whether they are bulls or bears have been playing with the market making the life of genuine pepper traders difficult making the national exchange platform an online casino without any mechanism to check the unfair play .

The government can close down the watchdog as they do not know how to regulate and control the exchange, said a past chairman of a regional bourse, before the entry of National Exchanges the FMC ( Forward Market Commission) used to suck the blood of the regional bourses inspite the bourses were run in a very systamatic manner, he added.

The pepper market in India has been media driven for quite sometime and the wrong informations which were conveyed to the innocent retail investors and general public by some vested interests who were inturn getting severly hurt these days according to our sources.

Even when a pound of pepper was not traded outside the country because of the price difference of usd 400- 500 pmt between indonesia and indian black pepper asta some of the media was giving false hope to many that indian pepper will be sought for exports because the stocks in Indonesia is exhausted and Vietnam finished selling and pepper will be available from that country only in Jan/Feb 2011.

But the fact is Vietnam has exported 7000 mt of pepper in the month of August also and Indonesia 4000 mt where as Indian imports was more than 1500 mt and the exports which included imported material was hardly 1000 mt.



United States of America, the worlds largest importer and user has imported 5630 mt of Black pepper and 602 mt White pepper and is a five year record imports and their total imports for the first seven months of the calendar year for Black pepper is 29,864 mt which again is a record and white pepper 3346 mt and thats the reason why even Indonesia and Brazil who are usd 400- 500 lower than India are not able to sell currently as the coverage by the importers in the United States is pretty decent and no rush is seen from importers to cover even 2011 first quarter.



The indian Black pepper futures is bought and kept by people who do not need a gram for their own use will have to sell off otherwise they will loose their shirt commented a veteran .

There is an old saying in Kerala from where most of the pepper is exported " unless the pepper crosses the seven seas dont play bullish for long otherwise you will be hurt badly".

Even when the British were ruling India the Queen of England got hurt playing with the Black Gold. The first eight months imports of pepper into the country has been 12000 mt where as the exports have been only hardly 10000 mt according to the trade and chamber of commerce so one should keep in mind most of the pepper exported out of the country is not indian origin because of the higher price tags of the country .

There is a potential that the market can drop another usd 200- 300 mt in the indian futures in the coming 6 weeks and india will be in the lime light again with its sterilised pepper for exports for the months of November/December and January 2011 according to the countries top exporter of pepper.

Jennifer La Rive