Trade sources said the market by and large remained in the hands of buyers during the week following shortfall in supply. Heavy rains in the major pepper growing areas has disrupted the supply line, they said. Traders are covering their long positions in anticipation of further increase in prices in the coming weeks.

Trade sources also said that there was a genuine shortfall in the supply scene following decline in production compared to last year. This goes against the estimates of government agencies which predicted a bumper crop during the season. The stock with the growers are rather thin, they feel.