Supported by depleting stocks and thin supplies in spot markets, pepper prices rose further by 1.13 per cent to Rs 38,855 per quintal in futures trading today.
However, expectations of higher production after rains picked up in top producing states – Karnataka and Kerala- capped the gains.
At the National Commodity and Derivatives Exchange, pepper for delivery in December climbed by Rs 435, or 1.13 per cent, to Rs 38,855 per quintal with an open interest of 4,977 lots.
The spice for delivery in the February contract moved up by Rs 310, or 0.90 per cent, to Rs 34,685 per quintal in 2,072 lots.
Market analysts attributed persistent rise in pepper prices at futures trade to depleting stocks and tight supplies in the spot markets but higher production hopes, capped the gains.
Meanwhile, pepper prices shot up by Rs 101.50 to Rs 37,833 per 100 kg in spot market in Kochi in yesterday's trade.