Indian pepper futures rose sharply on Friday on low arrivals in the physical market and firm export demand. Both the June and July contracts hit the initial two percent daily upper price limit.
"Indian prices are now cheaper than other major exporting countries," said an analyst with Angel Commodities Broking Pvt Ltd. A weak rupee has brought down Indian prices below Vietnam and Indonesia, she said.
The Indian rupee recently touched 13-month low against the U.S. dollar. It fell 8.8 percent since January and lost 1.6 percent in the last one week.
Pepper exports touched new highs in 2007/08 and rose 21.7 percent to 35,000 tonnes, according to the Spices Board. India, the second largest pepper producer and exporter after Vietnam, exports mainly to U.S., UK, Italy, Germany and Canada.
Supply situation is also tight in the physical market as arrivals have almost dried up, said Shardul Sharma, an analyst with Sharekhan Commodities Pvt Ltd.
In India, pepper harvesting starts in December and ends in February.
Source: Reuters
Spices at www.cradlebay.co.uk
Subscribe to:
Post Comments (Atom)
No comments:
Post a Comment