Indian Black Pepper Losing Its Grip on Global Trade

India, once a dominant force in the global black pepper trade, is now struggling to maintain its position. Over the years, black pepper exports have declined, with instability in shipments and increased dependence on imports affecting the industry. A recent study, highlights how India’s black pepper sector has shifted from an export-driven industry to an import-reliant one. The domestic market faces declining productivity, reduced export competitiveness, and fluctuating trade patterns, making it harder for Indian farmers to sustain profitability.

Cheaper Imports Push Indian Black Pepper Out of Global Markets

One of the biggest challenges for India’s black pepper industry comes from duty-free imports from Vietnam via Sri Lanka, allowed under the South Asian Free Trade Agreement (SAFTA). These imports are significantly cheaper than domestically grown black pepper, making them the preferred choice for exporters who focus on value-added products.

According to researchers Sachu Sara Sabu, Anil Kuruvila, and P. Indira Devi from Kerala Agricultural University, rising global black pepper production has pushed down prices in India, putting immense pressure on small and marginal farmers. While Karnataka leads in productivity, Kerala’s Idukki district has the largest acreage and production. However, the overall expansion of pepper plantations in Kerala has slowed down in recent years.

Domestic Market Keeps Indian Black Pepper Industry Afloat

Historically known as the "King of Spices," black pepper played a major role in India's political and trade history. In the 1980s, India exported 75% of its black pepper production, but in the last decade, exports have dropped to just 40% of total production. Over 80% of India’s black pepper is now consumed domestically, largely due to changing global trade policies and increasing competition from other producing countries.

Since 2000, the composition of Indian black pepper exports has also changed. Earlier, most shipments consisted of whole black pepper, but today, nearly 50% of export revenue comes from crushed or ground black pepper. Although India has diversified its black pepper exports by increasing the share of value-added products, overall export volumes continue to decline, while imports have steadily risen.

Conclusion

To reclaim its former position in the global black pepper market, India needs to focus on value addition, improve farm productivity, and explore new international markets. Without significant policy changes and support for local farmers, cheap imports will continue to dominate, and India’s black pepper industry may struggle to regain its lost glory.





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