Pepper Commodity Trading
Black pepper - the black gold of spices is one of the most popular spices in the world. India is second largest producer for black pepper in world after Vietnam. In India harvesting starts from December and extends till March whereas the arrivals in the physical markets start from February. Out of all the varieties of pepper (white, green, pink, black) Black and the White variety are widely used. Besides India, the other major consuming countries are Srilanka, Brazil, Indonesia and Malaysia. Amongst the non-IPC countries, Thailand is a second largest consumer of the Black Pepper and is next only to India in consumption.
What makes pepper good investment?Global output of pepper is around 3 to 3.25 lakh MT per year, of which India produces about 0.5 lakh MT per year.
Global export demand is about 2.25 MT per year of which India exports 20,000 MT.
India being one of the largest producer and consumer, the price of pepper is determined largely by domestic factors apart from other producing nation
Why is Pepper a wise investment for an Indian trader?India is one of the largest producers and exporters of black pepper in world along with Vietnam, Indonesia and Brazil.
Black pepper, being one of the oldest and most popular spice across the globe. The major importing nations like USA, EU are creating higher demand every year, thus there is increased international competition. Indian origin pepper is considered to be of best quality which attracts these importers.
India is also the largest pepper consumer in the world. This makes pepper prices very vulnerable to changes in Indian demand and supply.
Pepper futures contract was launched on NCDEX platform on April 2004 and has witnessed considerable volatility since its launch.
Good availability in physical markets provides cash and carry opportunity to arbitragers. It serves as a hedging platform for the Producers and Exporters.
Pepper contract is highly liquid and provides easy entry and exit to a speculator. Thus the Pepper contract provides space for every investor category.
How can Kotak Commodity help me invest in paper?Kotak Commodity Services Private Ltd (formerly known as Kotak Commodity Services ltd) Limited is a single Window for Complete Risk Management Services. We help hedger hedge in line with the corporate policies of the Client; provide client education. Have a dedicated Relationship Manager (RM). Provide market Intelligence and research. Give infrastructure / Administrative Support. Also make sure that the client is in compliance with the regulatory bodies.
At Kotak Commodities, we offer attractive brokerage rates and the best part is that our Gateway is a free trading account for life, carrying no account maintenance charges at all!
To learn more about Kotak Commodity Gateway Account, please click here.
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BCE/TCM/CORP/0021, BCE Trading Member Id: 545, NCDEX/TCM/CORP/0479, NCDEX Trading Member id 00155, MCX/TCM/CORP/0479, MCX Trading Member Id 10440, NCDEX Spot Trading Member Id: 10040, SEBI registration no - INZ000044135