MUMBAI (Commodity Online): India Pepper futures crashed further on Wednesday as weak global demand and hopes of higher production in the country continued to impact prices.

At National Commodity and Derivatives Exchange, Pepper December contract fell to a low of Rs 37625 per 100 kg before rebounding to Rs 37850 in afternoon trade.

Pepper futures is being weighed down by increased production globally and fears of regulatory action by commodity markets regulator, Forward Markets Commission (FMC).

On technical charts, Pepper has lost seen a break of crucial support levels and looks set to move towards 37000 levels soon. 

In the international  market, Indian parity continues to remain out-priced at $7900 per tonne. And the spot price traded at Rs.39700 per 100kg.  India’s production for 2013 is estimated to be 55000-60000 tonnes against 43000 tonnes projected for the year 2012.Pepper harvesting will begin by mid of December month in Kerala.  According to report from IPC, in 2012, Sri Lanka is estimated to produce around 17370 tonnes  of pepper  and is expected that more than 10000 tonnes is for export. Up to October 2012, export from Sri Lanka is 9120 tonnes against 4804 tonnes a year ago period.