India pepper up on tight supply, Vietnam price hike

MUMBAI, July 3 (Reuters) - Indian pepper futures rose on Thursday on tight supply situation and talk of a price rise in Vietnam, analysts said.

"Arrivals are very low in the spot market. Farmers are expecting prices to move up, as harvesting in Vietnam has ended," said an analyst with Motilal Oswal Commodities Broker Pvt Ltd.

In Vietnam, the largest producer and exporter, harvesting ended in June. India is the second largest producer and exporter.

There was some domestic demand, which supported the market, he said, adding export demand is still sluggish.

Prices in Vietnam rose about $50-$100 at the end of the harvesting season, which also boosted sentiment, said an analyst with Angel Commodities Broking Pvt Ltd.

However, fresh arrivals from Brazil and Indonesia may restrict the gains, he said. Arrivals from those countries starts in early July.

Open interest for August contract rose to 8,557 tonnes from 8,402 tonnes the previous session.

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

Contract Reuters code Closing price Change in %