The quantity of pepper in the market during the week has also declined, they said. Trade sources said that dealers are carrying forward long-term futures as the quantity coming into the market was thin. There was more than 50 per cent dip in the arrival of fresh stock into the market compared to last year, they added.

They said the prices are likely to firm up further in the medium-term as the US buyers, the major source of world demand, started turning to Indian market for sourcing the commodity. The decline in fresh arrivals also would lead to further flare-up in prices, they added.

However, they said, compared to last year the percentage of Indian pepper in the total US imports have declined considerably this year following the flaring up in prices. The US traders so far beenselling the inventory in the market, they said adding now their inventory level has depleted considerably.