PEPPER

Pepper Trade

National Trade

During 2003, Indian exports of pepper amounted to 17,200 tonnes, reporting a 31% fall compared to exports of 24,914 tonnes in 2002. The export in 2003 was the lowest quantity of pepper exported from India during the last four decades. This quantity was only 64% of the average export over the last five years. In terms of export share, India contributed only 8% to total producing country exports in 2003, a fall from the 14% of average share during last five years.

In the case of black pepper there was a steep decline in exports from 42,806 tonnes in 1999-2000 to 14,150 tonnes in 2004-05. At the same time there was a significant increase in the import of pepper from 3124 tonnes in 1999-2000 to around 17725 tonnes in 2004-05.

Estimated export of pepper from India during April-November 2005 compared with April-November 2004

Developments in the spice industry in India have significantly affected exports. During 2003, export of whole pepper from India was only 26% of the total production, against 31% during 2002.

The main market for Malabar black was United States, which traditionally imported around 50% of India's exports, followed by Canada, Netherlands and Italy. However, during 2003, only 30% of India's export was shipped to the United States. United State increased their imports of pepper from Vietnam instead of India. United States import of pepper from India reported a gradual reduction from 2000 to 2004. But United State’s import of pepper from Vietnam gradually increased from 2000 to 2004.(www.mcxindia.com)

United States import of Pepper from India and Vietnam from 2000-04 in Tonnes

The global exports of pepper are around 2-2.5 lakh tonnes, with 2.29 lakh tonnes being exported in 2003. The major exporters of pepper are Vietnam (82000 tonnes), Indonesia (57000 tonnes), Brazil (37940 tonnes), Malaysia (18500 tonnes) and India (17200 tonnes).

India's net export showed gradual reduction from 2000 to 2002. Though quantity of pepper exported to India by Sri Lanka increased considerably from 2001 to 2002, subsequently declined in both 2003 and 2004 compared to the quantity exported in 2002. Sri Lanka share in India’s import of pepper (quantity) from 2001 to 2004 was as follows

Sri Lanka’s share in India’s import of Pepper

SriLanka’s export and India’s import of pepper from 2001-04

However, Sri Lanka’s export of pepper to India represents approximately 6.6% when compared with the total quantity of pepper produced by India. (Average from 2001 to 2004)

Trade promotion agencies

Spices Board India

The Spices Board India (Ministry of Commerce & Industry, Government of India) is the apex body for the export promotion of Indian Spices. Established in 1987, the Board is the catalyst of these dramatic transitions. The Board has been with the Indian Spice industry at every step of the way. The Board plays a far-reaching and influential role as a developmental, regulatory and promotional agency for Indian Spices.

Activities

The Board is a link between the Indian exporters and the importers abroad.

Its broad-based activities include formulation and implementation of quality improvement systems, research and development programmes, education and training of farmers, processors, packers and exporters on post harvest handling and registration and licensing of traders and exporters.

It acts as a data bank and communication channel for importers and exporters and promotes Indian Spices abroad.

The Board has close association with international agencies like International Trade Centre (ITC) Geneva, United Nations Development Programmes (UNDP), International Pepper Community (IPC) Jakarta, American Spice Trade Association (ASTA), European Spice Association (ESA), All Nippon Spice Association (ANSA) Japan, International Spice Group (ISG), Food and Agricultural Organization (FAO), Commonwealth Secretariat (COMSEC) London, International Geneal Producers Association (IGPA), United Nations Industrial Development Organization (UNIDO).

The Spices Board has adopted two major strategies for quality improvement. One is the introduction of the Indian Spices Logo; the other the Spice House Certificate.

Contact Details

Spice Board has started marketing organic pepper, quality cardamom and cured vanilla beans worldwide under the brand ‘Flavourit’. The products are in the premium segment. Union Commerce Minister, Mr. Kamal Nath, officially launched the Spices Board's direct electronic marketing of organic pepper and cardamom on January 20. According to Spices Board, the brand has been well received abroad especially in Germany, New Zealand and the US. The concept is gaining momentum in the international market. Indonesia, China, Sri Lanka etc are also planning to market their products through e-marketing.

NAFED (National Agricultural Co-operative Marketing Federation of India Limited)

NAFED for the last more than 4 decades has been in the spices trading particularly the major spices such as Black Pepper, Dry Ginger, Cardamom Small, Turmeric and Red Chillies etc. Apart from these items minor spices such as Coriander Seed, Cumin Seed, Fenugreek Seed grown in the Central and North India are also purchased for Internal and International Trading. NAFED is also the Nodal Agency of Government of India for purchases of various spices under the Market Intervention Scheme.