Pepper

Pepper….King of Spice

Pepper (Piper nigrum L.) is a synonym to the Asian continent. A perennial climbing vine of the family
Piperaceae, is indigenous to the Malabar Coast of India. Pepper is one of the oldest and best-known spices
in the world and is popularly known as the king of spices because of its widespread use. The regions
climatic conditions, soil contain makes it suitable for pepper plantation. To top it all, the eating habits of
the Asian habitants ensured it as a daily consumption item. Hence, the production of pepper is a necessary
to this region, which has also aided in prospering Asian economy.

Global Scenario

World Pepper production, as per International Pepper Community (IPC) projection, of around 300,000
metric tons during 2003 is dominated by Asia region accounting for 65-70% of total production. The
region caters for three-quarters of the total export market. This facts clearly portray the importance that the
Asian region has in the world pepper trade. Changing global scenario has reduced the globe into a single
market. Growing business needs is drawing people closer into single market place. In fact, not too long ago
– about two centuries ago – traders from western world traveled entire globe in search of business. And, if
the history has anything to do with – they came to eastern shore with purpose of making trade, more
precisely in search of ‘spices’.

Plantation

In India, pepper vines usually flower during May to June with the commencement of the monsoon. It takes
about six to eight months from flowering to harvest. The main harvesting season is from November-
December in the plains and January to March in the hills. Harvesting in Sarawak takes place in June-July,
while in Brazil the harvest season of black pepper is in August-September. In Lampong the harvest season
is from July to September. World over black, white and green are three different kinds of pepper that are
available.

Usage

Pepper is widely used as test enhancer in the food. Also, the pepper plant’s medicinal properties further
added to its usefulness (Pepper plant oil is used in ‘Aroma Therapy’ of health care). Black and white
pepper has two main components, the volatile oil and the pungent components, commonly known as
piperine. Black pepper contains about 0.6 - 2.6% essential oil that has the aromatic flavor of black pepper
but not the pungency. The level varies depending on the source, maturity and variety. Of the 100 different
components in the essential oil, the main ones are a-pinene, b-pinene, 1-a-phellandrene, b-caryophyllene,
limonene and sabine-delta-3-carene. The main pungency principle is piperine, the trans form of 1-
piperoylpiperidine. Other minor pungent alkaloids are piperidine, piperettine, piperyline, piperanine and
piperolein A and B.

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 Pepper

Major Producers M ajo r P e p p e r P ro d u ce r

2003
2002
2001
Pepper is mostly planted in tropical region with hot 2000

and humid climatic condition and arid area. Apart

1999

from Asian countries such as Malaysia, Indonesia,

India, Thailand, Vietnam, China and Sri Lanka,
pepper planting is also done in Brazil, Madagascar.

In d o n e s ia

S ri L an k a
M alays ia

T h ailan d
B razil

C h in a
V ie tn am
In d ia
The chart below provides overview of the major
pepper producing countries in the world.

Indian Scenario

Asia has a long history of spices production that dates back to 7000 BC. India is believed to the origin of
spices. The country is estimated to produce 500,000 tons of spices and herbs valued at US$1500mn are
exported globally every year. In pepper production, India ranks next only to Vietnam. The pungent taste of
the pepper and its aroma that added in the food preparation made it an key element of daily nutrition.
Pepper is widely grown in the southern region of Malabar, in Kerala where it can be seen as a homestead
crop in almost all households. Apart from Kerala, pepper is also grown in Karnataka and Tamil Nadu. The
important varieties grown in these areas are Panniyur-1, Karimunda, Kottanadan, Kuthiravaly and Pala.

Import/Export Scenario
India dominates world pepper market given its M ajo r P e p p e r Exp o rtin g C o u n tire s
consumption and production pattern. However, Asian
countries such as Vietnam, Indonesia, Malaysia are the 2003

major exporting countries. India exports about 10% of 2002

the global pepper demand. US is the largest importer of

pepper in the world followed by European market.
Export from Asian region accounts for 78% of the total
export market which is estimated at 194,000 tons.

Prices B ra z il In d ia In d o n e sia M a la y sia V ie tn a m

Pepper prices over the years have been declining following the heavy output and high ending stocks. World
production has grown 50,000 tons in the last five years. Vietnam, Indonesia and Brazil have been leading
the production growth. Consumption, on the other hand, has failed to keep up pace with the growth in
production. As a result, pepper prices have plunged considerably. Origin and variety are the two factors
that determine pepper prices. High preference is given to pepper produced in India, but abundant
production of other quality pepper and at cheap rate has always played on the prices of this commodity.

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 Pepper

Domestic Prices
Spice Grade/Variety Market Price for the Last week Last month Last year
week price same week same week
(28.8.2004) (21.8.04) (31.7.04) (30.8.2003)
(Rs/kg) (Rs/kg) (Rs/kg) (Rs/kg)
Black Malabar Garbled Cochin 68.5 69.8 71.00 72.83
pepper (MG-1)

International Prices
Spice Origin/ Market Price for Last week Last month Last year
Grade the week price same week same week
(27.8.04) (13.8.04) (23.7.04) (13.8.03)
(US$/ton) US$/ton) (US$/ton) (US$/ton)

Black Malabar Garble New York 1654 1654 1676 1892

pepper D(MG-1)

Outlook

Increasing efforts at encouraging Agro-commodity exports and in value addition products is expected to
boost trading activity in India. The Indian Spice Board has formulated and implemented three-tier quality
certification program towards encouraging exports. The consistent effort of the Board during the last
decade has improved the share of the value-added products in the export basket to more than 60%.

Published in October 2004. © India Infoline Ltd 2004-05.

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