Most pepper futures erased early gains and ended down due to probable rise in fresh crop arrivals in the upcoming days. Availability of Vietnam pepper at a competitive rate compared to Indian origin also weighed on the market sentiments. Meanwhile, there are reports that the growers were holding their stocks expecting an increase in prices amid lower production estimates. According to IPC, pepper output in India is estimated to decline to near 43000 tonnes in 2012 from around 48000 tonnes last year.
Pepper futures are likely to gain as the spot prices are trading at a premium to futures. Spot price for garbled pepper is priced at Rs.31100 ($632.82, €476.74, £398.05) per 100kg and around Rs.29500 ($600.27, €452.21, £377.57) in the futures market.