Indian pepper futures moved up on Friday on a tight supply situation and tracking low rainfall in major growing regions, which may affect production, analysts said.
"Arrivals are very low in the spot market as farmers are not offloading their stocks on the expectation of further price rise," said Vibhu Ratandhara, an analyst with Bonanza Commodity Brokers Pvt Ltd.
Harvesting is over in Vietnam and prices have started rising there, which also supported the market, he said. In Vietnam, the largest producer and exporter, harvesting period is March-June.
Rainfall has eased in Kerala, a major growing region, which is likely to affect the flowering in the spikes of the plants, said an analyst with Anagram Comtrade Ltd.
Kerala contributes about 90 percent of the total production. The plant needs well distributed rain for better flowering, which normally happens during June and July.
The August contract would face resistance at 14,375 rupees and get support at 14,000 rupees, Ratandhara said.
Open interest for August contract rose to 8,779 tonnes from 8,536 tonnes the previous session.
Spot pepper rose 1.4 percent to 14,334 rupees per 100 kg in spices hub of Kochi in Kerala.
Source: Reuters
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