Pepper futures for the June contract on NCDEX extended the decline with futures dropping by Rs 900 or around 3% per 100 kg to Rs 29401 in the afternoon trading session. The open interest dipped by 19.56% to 5208 tonnes and the volume traded as of now stood at 4,217 tonnes.
Weak export demand, stable spot market and strong supplies from Vietnam added bearish cues in the Indian pepper market. Ample supply from Vietnam is there in the global markets while harvesting just started in Indonesia.
Vietnam Pepper Association (VPA) reported reaching total production output of 100,000-110,000 tonnes of pepper in 2010-2011 crops, equivalent to that of 2010.
The Information and Statistics Centre under Ministry of Agriculture and Rural Development, Vietnam released the targeted pepper export turnover this year of over $766 million, increasing by 1.48 times against the prediction in April thanks to surging trend in export volume and export price in recent times.
As per the latest updates from the General Statistics Office of Vietnam, Vietnam exported nearly 56,000 tonnes of pepper valued $297 million during the period of January to May 2011. Exports are down by 5.60% in volume terms meanwhile in value terms surged by 61.20% over the same period last year.
Vietnam exported nearly 15,000 tonnes of pepper with value of 87 million USD in the month of May 2011.
According to the Spices Board, the total quantity of 18,850 tonnes of pepper valued at Rs 383.19 crore was exported from India during the period April to March 2010-2011 as against 19,750 tonnes valued at Rs 313.93 crore last year, registering an increase of 22 per cent in value. The unit value of pepper has increased from Rs 158.95 per kg in 2009-10 to Rs 203.82 per kg 2010-11.