India spices mostly down on arrivals, low demand

MUMBAI, Nov 21 (Reuters) - Indian pepper futures fell in afternoon trade on low export demand and hopes of a higher output, analysts said.

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.

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.

At 2:18 p.m., the benchmark December contract NPEZ8 was at 11,465 rupees per 100 kg, down 1.73 percent.

JEERA:

Indian jeera futures declined on weak exports and hopes of higher production may cap gains later in the day.

Exports fell 18.5 percent in October due to low overseas demand, again as a fallout of the global financial crisis, according to the Spices Board.

Also, output is likely to rise 10-15 percent in 2008/09 as farmers have increased acreage under the spice due to better price realisations last year, said an analyst with Karvy Comtrade Ltd.