Pepper futures advanced following the trend in spot market. The spot price rose by Rs.300 ($6.08, €4.64, £3.87) per 100kg from previous day. Reports on higher export demand also supported the prices. As per market source, Indian parity was offered at around Rs. 318,470 ($6450, €4927, £4113) per tonne for Europe and Rs333,282 ($6750, €5156, £4304) per tonne for US. According to trade sources, pepper production in Vietnam is likely to increase to around one hundred twenty thousand tonnes in 2012 due to the rise in acreage and better yield.
Pepper production in Kerala may decline compared with last year due to unfavorable weather conditions and lower yield from old plants. Karnataka is likely to take over the top position due to expansion in acreage and high yield from newer plantations.