India pepper futures rise on tight supply

MUMBAI, Aug 1 (Reuters) - Indian pepper futures ended up on Friday, tracking a tight supply situation in the physical market, analysts said.

"Farmers are now holding back their stocks on hopes of further price rise," said an analyst with Motilal Oswal Commodities Broker Pvt Ltd.

Production in Vietnam in 2008 was lower than last year, which has raised hopes of a price rise, he said.

Vietnam, the world's largest black pepper producer, has completed harvesting up to 87,000 tonnes of the spice, down from 90,300 tonnes last year, the Vietnam Pepper Association said last month.

However, rains in major growing regions may restrict the gains in coming days, said Vibhu Ratandhara, an analyst with Bonanza Commodity Brokers Pvt Ltd.

The pepper plant needs rain at regular intervals for better flowering, which normally happens during July and August.

Open interest for September contract rose to 8.309 tonnes from 8,166 tonnes the previous session.

Spot pepper rose 0.07 percent to 14,405 rupees per 100 kg in spices hub of Kochi in Kerala.

Following are the closing prices of pepper futures in rupees per 100 kg on the National Commodity and Derivatives Exchange Ltd. <0#NPE:>: