Despite playing a significant role in the global spice trade, Indian black pepper exports have declined over the decades, mainly due to the instability in shipment.

A paper on “Navigating Changes: Trends and Challenges in Black Pepper Trade” has said India’s black pepper sector has turned out to be import-oriented and the trade exhibited considerable variations. The domestic black pepper sector faces multiple challenges from declining productivity to reduced export competitiveness.

Import, the spoilsport

India can regain its prominence in the global black pepper trade and support its domestic producers in achieving sustainable growth by adopting innovative strategies, focusing on value addition and diversifying markets. Intensive efforts are needed to bring Indian pepper back to its old glory. Highlighting Indian pepper’s unique quality and value addition is a great challenge if the sector wants to be competitive in the international export market.

Sachu Sara Sabu, Anil Kuruvila and P Indira Devi of Kerala Agricultural University, in their paper, said duty-free import from Vietnam via Sri Lanka under the South Asian Free Trade Agreement has made imported black pepper cheaper than domestic varieties. Consequently, exporters specialising in value-added products increasingly rely on imported black pepper. This, coupled with rising global production, has led to falling prices in the Indian market, adversely impacting small and marginal farmers.

Karnataka, Kerala and Tamil Nadu are the leading pepper-producing States, with Karnataka recording the highest average productivity. In Kerala, Idukki is leading with the largest acreage, production and productivity. However, the rate of area increase for pepper in Kerala has declined due to aged plants, inadequate management and harvesting challenges, the paper said.

Domestic offtake, the saviour

Black pepper, known as the king of spices, is closely linked with the history of global trade and Indian political and commercial history. Once a leader in global black pepper production and export with 75 per cent of production exported in the 1980s, black pepper export has dropped to 40 per cent of production in the last decade. Domestic consumption now accounts for over 80 per cent of the country’s production. This is mainly due to trade liberalisation.

Post-2000, there has been a notable shift in the composition of black pepper exports from India. Earlier, most exports were in the form of non-crushed black pepper. Currently, almost 50 per cent of the value of black pepper exports from India is contributed by crushed or ground black pepper.

The rate of growth in black pepper exports decreased over the decades, whereas the import growth has increased. The black pepper exports from India became more diversified in recent periods, which clearly show the decline in the share of the commodity in the primary form and increase in the share of value-added products.

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