India pepper falls on low exports, output hopes
MUMBAI, Nov 21 (Reuters) - Indian pepper futures fell on Friday on low export demand and hopes of higher output, analysts said.
"Demand has come down sharply due to the economic crisis," said Veeresh Hiremath of Karvy Comtrade Ltd.
Pepper exports from India during the April-October period fell 35 percent to 14,750 tonnes as the credit crunch hit major importing countries, the Spices Board said on Thursday.
Output in Karnataka, the country's second largest producer, may rise by 10-20 percent due to conducive weather.
However, tight supplies and dwindling warehouse stocks may support the market, analysts added.
The supply situation is likely to remain tight till the arrival of the new crop in December.
The December contract is likely to get support at 11,180 rupees and face resistance at 11,700 rupees, Hiremath said.
Spot pepper fell 1.2 percent to 11,800 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:>: Continued...
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