Black Pepper Import/Export and Price Fluctuations in the Indian Market
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By Karthik
Black pepper or Peppercorn is a widely used spice in the world which is known for its pungent and spicy taste. It is obtained from the fruit of the black pepper plant, which is native to southern parts of India. India has been cultivating black pepper for many centuries, and it plays a significant role in the country’s spice trade. Kerala(God’s Own Country), a state located in
southern India, is renowned for its high-quality black pepper production and cultivation, and the Malabar region of Kerala produces some of the finest black pepper in the world. India is home to various black pepper varieties, including Tellicherry, Malabar, and Coorg. Tellicherry black pepper has a bold flavor and intense aroma, while Malabar black pepper has a fruity flavor and is often used in Indian curries and pickles. Coorg black pepper has a sharp taste and is grown in the Coorg district of Karnataka, India. Black pepper continues to be an essential ingredient in kitchens worldwide, adding depth and flavor to a variety of dishes. Its popularity and significance in the spice trade make it a valuable commodity in the global market
Black pepper is used in global cuisine for centuries because it adds a unique flavor and aroma to dishes and is a staple ingredient in many kitchens around the world. In India, black pepper is an essential ingredient of many dishes, including curries, chutneys, and biryanis. Its bold flavor complements the rich and complex flavors of Indian cuisine. Similarly, black pepper is widely used in Southeast Asian cuisine, adding a spicy kick to dishes like pho and pad Thai. In global cuisine, black pepper is used to add depth to dishes like Italian pasta sauces and French steak au poivre. It is also a key component in many spice blends and rubs used in Latin American and Caribbean cuisine. In addition to its culinary uses, black pepper is also known for its numerous health benefits it has antioxidants and anti-inflammatory properties that aid in digestion and improve overall health. Its popularity and significance in the culinary world make black pepper a valuable commodity in the global spice trade.
Price of black pepper is determined by several factors like climatic conditions, cultivation practices, and market demand. Climatic conditions play a significant role in determining the quality and quantity of black pepper produced. Regions with ideal growing conditions, such as moderate temperatures and adequate rainfall, are more likely to produce high-quality black pepper. Kerala is the largest producer of the finest black pepper in the world. The Malabar region of Kerala produces some of the best black pepper due to its ideal climate, fertile soil, and experienced farmers. Coorg, located in Karnataka, is another region known for producing high-quality black pepper due to its favorable growing conditions.
Cultivation practices also influence the price of black pepper. Farmers who employ sustainable farming practices, such as crop rotation and organic fertilizers, are more likely to produce high-quality black pepper that commands a higher price in the market. Farmers who use synthetic fertilizers and pesticides may produce lower quality pepper that fetches a lower price in the market. The cultivation practices employed by farmers in different regions can also affect the flavor profile of black pepper, with each region having its unique taste and aroma. Kerala black pepper is known for its strong aroma and bold flavor, while Coorg black pepper has a sharp and distinctive taste.
Current black pepper market situation
Black pepper market has seen some ups and downs over the past few years still India is the largest producer in the world, with Kerala being the largest producer within the country. Black pepper production in Kerala has been affected by various factors such as climate change, pest attacks, and the high cost of cultivation. Despite these challenges, Kerala has managed to maintain its position as a leading producer of high-quality black pepper. According to the Spices Board of India, Kerala produced 22,000 metric tonnes of black pepper in the year 2020-21, which was a slight increase from the previous year.
In terms of exports, black pepper is one of the most exported spices from India. According to the Agricultural and Processed Food Products Export Development Authority (APEDA), India exported 23,450 metric tonnes of black pepper worth USD 143 million in the year 2020-21. Out of this, the majority of the export came from Kerala. However, the export volume has decreased slightly over the past few years. In terms of price, black pepper has seen a fluctuation in price over the past three years. In 2019, the average price of black pepper was around USD 3,900 per metric tonne, which increased to USD 4,200 per metric tonne in 2020. However, the price has decreased to around USD 3,500 per metric tonne in 2021 due to the COVID-19 pandemic affecting global trade
Impact of black pepper prices on different industries
Impact of black pepper prices on different industries can vary significantly, as the spice is widely used in numerous sectors. In India, the food industry is one of the largest consumers of black pepper, using it in various forms such as whole, ground, or as an essential oil. Black pepper is a common ingredient in most Indian dishes, and the demand for the spice is high across the country. The rising prices of black pepper can affect the food industry’s profit margins, leading to increased costs for consumers. In recent years, the Indian food industry has been hit hard by the rise in black pepper prices, leading to concerns about the sustainability of the sector.
Apart from the food industry, the cosmetic and pharmaceutical industries also heavily rely on black pepper for their products. Black pepper essential oil is used in numerous cosmetic products, such as perfumes, soaps, and lotions. The oil is also used in several pain-relieving and anti-inflammatory medications, making it a crucial ingredient in the pharmaceutical industry. The rising prices of black pepper can increase production costs for these industries, leading to a ripple effect on the prices of the final products. The demand for black pepper in these industries is expected to rise in the coming years, making it crucial to keep a close watch on the market trends to maintain a steady supply of the spice.
Majority of black pepper imported into India comes from countries such as Vietnam, Indonesia, Sri Lanka, and Thailand. Where Thailand is the largest exporter of black pepper to India, accounting for nearly 30% of India’s total black pepper imports. In 2020, India imported a total of 27,063 metric tons of black pepper, with a total value of around 3.7 billion Indian rupees. The average import price of black pepper in India was around 136.56 Indian rupees per kilogram.
The increasing demand for black pepper in India can be attributed to the growth of the food industry and the increasing popularity of traditional Indian dishes around the world. In recent years, the price of black pepper in India has seen a steady increase due to a combination of factors such as unfavorable weather conditions, low crop yields, and high demand. This has led to an increase in the cost of raw materials for various industries such as food, beverage, and pharmaceuticals, which rely heavily on black pepper as a flavoring agent. Despite the rising prices, the import of black pepper to India is expected to continue to increase in the coming years due to the high demand for this versatile spice.
Black Pepper Price in India
Black Pepper is one of the most widely used spices in India, and its price can vary significantly depending on the state you are in. According to recent reports, the price of black pepper in India ranges from Rs. 350 to Rs. 750 per kilogram, with the highest prices found in states like Maharashtra, Karnataka, and Tamil Nadu. However, the best place to purchase black pepper at a reasonable price in India is Kerala, which is also the largest producer of black pepper in the country. Kerala’s Malabar region is renowned for its high-quality black pepper, which is exported worldwide. Kerala’s favorable climate and ideal growing conditions make it an excellent place to buy black pepper at a fair price. Additionally, the state’s proximity to the ports makes it easy for exporters to transport the spice to different parts of the world.
Where to buy Black Pepper in India?
If you are looking for the best place to buy black pepper in India, look no further than Pureleven. Pureleven is a trusted online store that offers high-quality black pepper at competitive prices. Customers can easily purchase black pepper from Pureleven’s website, pureleven.com, and have it delivered to their doorstep. The online store also offers bulk orders for those who require larger quantities of black pepper, and customers can send an email to purelevenexim@gmail.com for further details.
The price of black pepper may vary depending on the market conditions and demand, but at Pureleven, customers can expect prices to range from 480 to 530 INR, excluding GST and shipping costs. By choosing Pureleven, customers can rest assured that they are getting the best quality black pepper at a fair price, and they can avoid the hassle of visiting physical stores to purchase this essential spice.
FAQs
As of April 2023, the Indian government website agmarknet.gov.in reports the wholesale price of black pepper in Kerala to be in the range of Rs. 490 to Rs. 540 per kg. However, it’s important to note that the prices may vary depending on the region, quality, and demand. It is advisable to check the current market rates before making any purchase.
According to the Indian government website (https://www.cybex.in/knowledge-base/HSN-code-for-black-pepper.aspx), the HSN (Harmonized System of Nomenclature) code for black pepper is 0904, which falls under Chapter 9 – Coffee, tea, mate and spices. The GST (Goods and Services Tax) rate for black pepper in India is currently 5%. However, it is important to note that GST rates are subject to change based on government policies and regulations.
Pureleven is one of the websites that sells black pepper in bulk, and customers can enquire about purchasing through their email, purelevenexim@gmail.com.
According to the Spices Board of India website, as of April 2023, the prices of black pepper in other states in India are as follows:
● Kerala: Rs 490 to 540 per kg
● Karnataka: Rs. 525 to 555 per kg
● Tamil Nadu: Rs. 535 to 545 per kg
● Maharashtra: Rs. 535 to 550 per kg
● Madhya Pradesh: Rs. 525 to 550 per kg
● Andhra Pradesh: Rs. 525 to 550 per kg
The best time to purchase black pepper in Kerala is during the harvest season, which starts from December and lasts until May. During this period, the availability of black pepper is high, and the prices are comparatively low.
The price of black pepper per 1 kg in India can vary depending on various factors such as location, season, and demand. As of April 2023, the price range for black pepper per 1 kg in India is approximately INR 480 to INR 530, excluding GST and shipping costs. However, prices may vary depending on the region and seller. It is recommended to check with local markets or online platforms to get an accurate and updated price range.
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