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PEPPER: Quantity to Match Quality Market Survey BY: DR P. CHENNAKRISHNAN PEPPER: QUANTITY TO MATCH QUALITY Owing to its quality, Indian pepper commands a premium in the international market. However as India itself is a big consumer of pepper, the quantity available for exports is limited. lack pepper (Piper ni- in the predominantly pepper grow- rainfall and humidity. The hot and grum L.), famous as ing state of Kerala, where more than humid climate of sub-mountainous ‘black gold’ and the 250,000 families are involved in its tracts of Western Ghats is ideal for ‘king of spices,’ has cultivation. its cultivation. It grows success- been an important ag- fully between 20 degree north and Bricultural commodity in India since south latitude, from up to 1500 me- Climate and soil pre-historic period. It is mainly used tres above sea level. The crop tol- as spice and its consumption is also Black pepper is a plant of hu- erates temperature between 10°C known to have many health benefits. mid tropics that requires adequate and 40°C. A well distributed annual Its cultivation is mainly confined to rainfall of 125-200 cm is ideal for the southern states, viz, Kerala, the crop. Ideal pH ranges from 4.5 Karnataka and Tamil Nadu. Kerala to 6.5. accounts for 72 per cent of the total production. The major Varieties pepper producing areas in Kerala are Idukki, Way- Over 75 cultivars of anad, Kannur, Kasara- black pepper are culti- god and Kozhikode vated in India. Kari- districts. munda is the most Pepper is cul- popular of all culti- tivated as a pure vars in Kerala. The crop in a very lim- other important ited area and that cultivars are Kottan- too in small pock- adan (south Kerala), ets. It is grown in Narayakodi (central a large number of Kerala), Aimperian small and mar- (Wynadu), Neelamun- ginal holdings, di (Idukki), Kuthirav- mixed with oth- ally (Kozhikode and er crops like coco- Idukki), Balankotta nut, arecanut, coffee and Kalluvally (north and cardamom. Kerala). Sixteen improved The crop is a major varieties have been released source of income and em- for cultivation from Pepper Re- ployment for rural households search Station, Panniyur, Kerala, FEBRUARY 2012 • FACTS FOR YOU 13 Market Survey Table I Table II from the month of July to October. The production is in State-wise Pepper Pepper Production in India the range of 22,000 to 25,000 Production Year Acreage Production Yield tonnes contributing 9-10 per (tonnes) (ha) (MT) cent of the world’s production. State 2007-08 2009-10 1997-98 181.5 57.3 316 Brazil. Major production Kerala 87,605 153,711 1998-99 239.8 75.7 316 of pepper in Brazil comes from Tamil Nadu 851 3122 1999-2000 195.6 59.0 302 the State of Para. The harvest- Karnataka 2360 18,857 2000-01 213.9 63.7 298 ing period for Brazilian pepper is from August to October. Its Others 40 5609 2001-02 219.4 62.4 285 estimated production in the Total 90,856 181,299 2002-03 224.4 71.7 320 year 2008 was 37,000 tonnes, Source: Economic Survey, government of India, 2003-04 233.4 73.2 314 which contributed 14-15 per New Delhi 2004-05 228.3 73.0 320 cent of the global production. 2005-06 260.2 92.9 357 Brazil is one of the biggest and Indian Institute of Spices Re- 2006-07 246.0 69.0 281 exporters of pepper to the US search, Calicut, such as Panniyur 1 2007-08 197.0 47.1 239 market. to 7, Sreekara, Subhakara, Pancha- 2008-09 238.7 47.4 199 Malaysia. About 95 per mi, Pournami, PLD-2, Sakthi, The- cent of the pepper is grown in Source: Economic Survey, government of India, Various vam, Girimunda and Malabar. Period, New Delhi the Sarawak region in Malay- sia and thus in the interna- Indian scenario tional market it is traded as Table III Sarawak pepper. About 14,000 Black pepper is one of the most Production of Different Types hectares of the land is under important spices grown and export- of Pepper (2009-2011) pepper cultivation in Sarawak, ed from India. India mainly exports (MT) with an annual production in Malabar grade black pepper. The Year Black White Total the range of 20,000 to 25,000 country itself is a very big consumer tonnes contributing around 2009 49,550 450 50,000 of spices so the quantity available 7-8 per cent of the total world Estimate 2010 49,550 450 50,000 for export is limited as compared production. The harvesting to its competitors. The country also Projection 2011 48,000 — 48,000 season is from May to August imports pepper from Sri Lanka, Vi- with the months of May and etnam, Brazil and Indonesia. The it was estimated at 34.6 per cent). June generally being the peak of the prices of pepper are highly volatile. Binh Phuoc, Dong Nai, Ba Ria-Vung season. The availability of pepper futures in Tau, Dak Nong, Gia Lai and Dak Malaysia is not a big pepper con- Indian commodity market has giv- Lak are the main pepper producing sumer, so 90 per cent of its produc- en the exporters an opportunity to regions of Vietnam. The total area tion is exported to the overseas mar- hedge their risks. under pepper cultivation is around ket. The US, Italy, Germany and 50,000 hectares with production Canada are among the biggest im- in the range of 90,000 to 100,000 Methods of porters of Indian pepper due to its tonnes. The harvesting period is pepper processing quality, which is why it commands a from the month of March to May. premium in the international mar- Vietnam is not only the biggest pro- Pepper crop takes six to eight ket. India also exports value-added ducer of pepper but also the largest months from flowering to harvest. products like pepper oil, pepper oleo- exporter in the world. Besides the When one or two berries in the spike resins, green pepper in brine and de- US, European and Asian countries turn bright orange or purple, it is hydrated green pepper. are big importers of the Vietnamese time for harvest. The harvesting produce. season extends from November to World scenario Indonesia. Lampung province January in the plains and January of Sumatra is the major black pep- to March in the hills. Vietnam. More than 30 per per producing region in Indonesia, Harvesting is done by hand pick- cent of the world’s pepper produc- while Bangka region produces white ing of the spikes from the vines. The tion comes from Vietnam (in 2008 pepper. The harvesting season is berries are usually separated from 14 FACTS FOR YOU • FEBRUARY 2012 Market Survey Table IV the farmers. Table I shows the state-wise pro- Balance Sheet of Global Supply and Demand for 2010 duction of pepper from 2007-08 to (tonnes) 2009-10. There has been a change Supply Demand in the production trend among Production 290,742 Consumption 320,000 states—pepper production is ris- Carry forward stocks for 2010 79,124 Carry forward stocks for 2011 72,082 ing in states other than Kerela too. Pepper production has gone up in Total 369,866 Total 392,082 Kerala itself. However, its contribu- Shortage 22,216 tion fell from 98 per cent in 1995-96 Source: Squeal to Pepper Seasonal Report, March 2010 to 96 per cent in 2002-03. In 2009- 10 Kerala’s share in production was Table V 153,711 tonnes. The share of Tamil Nadu is unchanged at 851 tonnes in Balance Sheet for India Regarding Pepper Supply and 2007-08 and 3122 tonnes in 2009-10. Demand for 2010 Karnataka’s share in total produc- (tonnes) tion, however, increased with 2360 Supply Demand tonnes in 2007-08 and 18,857 tonnes Production 55,000 Domestic consumption 45,000 in 2009-10. Imports 14,000 Exports 25,000 Table II shows pepper produc- Ending stocks of 2009 11,350 Carry forward stocks 10,350 tion and yield from 1997-98 to 2008- 09. The domestic consumption of Total 80,350 Total 80,350 black pepper is also increasing. It Source: Squeal to Pepper Seasonal Report, March 2010 rose from 52,000 tonnes in 2002 to 58,000 tonnes in 2003. the spikes manually and dried in exporters who are the final link in the sun on concrete floor or bamboo the chain. Global supply-demand mats till it is crisp. Now mechanical Private-sector operation is main- dynamics threshers are also used for separat- ly through commission agents, who ing berries from the spike. collect the produce from small farm- According to the global figures During sun drying, the berries ers and sell off the produce to the re- released by the International Pepper are periodically turned over to facili- tail traders at a price determined by Community (IPC), the balance sheet tate uniform drying. Dried pepper is demand and supply. of supply-demand for 2010 indicates cleaned and packed in gunny bags a shortage of nearly 22,216 tonnes. for storage. Graded or garbled pep- Development programme The IPC forecast 2011’s world pep- per and ungraded pepper are stored for pepper production per consumption at 320,000 to separately. 350,000 tonnes—significantly high- Spices Board is implementing er than 2010’s global production of Pepper trade within India a re-plantation/rejuvenation pro- 285,000 tonnes. According to IPC, and overseas: marketing gramme for pepper in Idukki and the global consumption—exclud- Wayanad (Kerela) and some of the ing China and India—grew at 4-6 channels North-Eastern states.
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