India pepper up on low Vietnam output, rainfall

MUMBAI, July 18 (Reuters) - Indian pepper futures rose sharply on Friday after reports of a fall in production in Vietnam, the largest exporter, and lower rainfall in major growing regions, analysts said.

Both July and August contracts hit the initial 2 percent upper daily fluctuation limit.

"Lower production in Vietnam is likely to increase the prices," said Veeresh Hiremath, an analyst with Karvy Comtrade Ltd.

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 on Thursday.

Lower rainfall in Kerala also supported the sentiment, said an analyst with Motilal Oswal Commodities Broker Pvt Ltd.

Kerala, the largest producer of pepper in India, has received 44 percent lower rainfall compared to its long-term average during June 1 to July 15, according to the weather department.

The September contract would face resistance at 15,360 rupees and get support at 14,750 rupees, Hiremath said.

Open interest for September pepper rose to 13,165 tonnes from 12,642 tonnes the previous session.

Spot pepper rose 0.2 percent to 14,502 rupees per 100 kg in spices hub of Kochi in Kerala.