May 31: Black pepper futures softened across the board on the pepper market here during the week amidst fears of US sanctions and fresh arrivals. Spot pepper also lost Rs 100 per quintal, following lack of demand and oversupply. Dealers here said that the prices were expected to bounce back once the market reconciled with the sanctions.However, IPSTA sources said sanctions were unlikely to kill the prospects of the commodity as India was the only source for the commodity. "European and US buyers are shying off from the market now. But they have to return sooner or later as the commodity is in short supply on the international market," a dealer said.
There are also rumours that several foreign buyers are trying to hammer down prices, cashing in on the sanctions threat.
"Speculators are out to hammer down prices. But, in the long-term prices will rebound," the dealer said.
Copyright © 1998 Indian Express Newspapers (Bombay) Ltd.
