Indian black pepper exports have seen a decline over the years due to instability in shipments despite playing a significant role in the global spice trade. A recent paper on “Navigating Changes: Trends and Challenges in Black Pepper Trade” has highlighted that India’s black pepper sector has become import-oriented, facing various challenges such as declining productivity and reduced export competitiveness.
To regain prominence in the global black pepper trade and support domestic producers for sustainable growth, India needs to adopt innovative strategies, focus on value addition, and diversify markets. Efforts are required to showcase the unique quality and value addition of Indian pepper to stay competitive in the international export market.
The ease of duty-free import from Vietnam via Sri Lanka under the South Asian Free Trade Agreement has made imported black pepper cheaper than domestic varieties. This has led exporters specializing in value-added products to increasingly rely on imported black pepper, contributing to falling prices in the Indian market and impacting small and marginal farmers negatively.
Despite Karnataka, Kerala, and Tamil Nadu being the leading pepper-producing states, with Karnataka having the highest average productivity, there are challenges such as aged plants, inadequate management, and harvesting issues in Kerala’s Idukki region, which leads in terms of acreage, production, and productivity.
Once a leader in global black pepper production and exports, India has seen a decline in exports over the decades, with domestic consumption now accounting for over 80% of the country’s production. The composition of black pepper exports from India has shifted post-2000, with almost half of the export value contributed by crushed or ground black pepper.
While the rate of growth in black pepper exports has decreased, import growth has increased, with a shift towards value-added products. Efforts are needed to revitalize the Indian black pepper sector and bring it back to its former glory in the global market.