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New York and Rotterdam are the main global centres of pepper trade. Malabar Grade 1, Lampung,

Sarawak and Vietnam are the major names in global pepper trade parlance.

The main season of pepper harvests in India is between January-March. The main physical markets

of pepper in India are Sulthan Batherry and Kalpetta in Wayanad and Kochi in Kerala. Apart from the

physical markets, pepper is one of the important commodities now traded in futures exchanges in

the country.

India is rated as the highest pepper consuming country in the world. Though demand for pepper

exists throughout the year, a surge is noticeable during the winter months. The share of India in

global pepper export has declined to less than 10 percent during the last three years. The main

factor for this drop is the competition from Vietnam.

Though the share of India in raw pepper export has declined, India is the major producer of pepper

oleoresin and pepper oil in the world. Nearly 90 percent of global pepper oleoresin is produced in

India.

Indian manufacturers are also turning themselves to be key players in grounded pepper exports.

Indian pepper is at a premium against all the international grades. However, the production and

exports of pepper from other locations has a profound influence on Indian pepper prices too

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The total output in India during 2005-06 was estimated at 45,000-50,000, 35 percent down

compared with the previous year. In 2006-07, the production of pepper is estimated to be lower than

that of the same period a year ago due to adverse climatic conditions and diseases to pepper vines

in major production centres.

Global pepper production is estimated between 300,000-330,000 ton per year. Vietnam, India,

Indonesia, Malaysia, Brazil, Sri Lanka, China and Ecuador are the main pepper producing countries

in the world.

In 2005, the global pepper production was estimated to be around 314,000 ton, down 3 percent

compared to the same period a year ago. International Pepper Community, an apex body of major

pepper producing countries in the world, has placed global pepper output in 2006 at 274,000 ton.

Global pepper demand in terms of export is estimated between 200,000-225,000 ton per year. The

main suppliers to the global market are Vietnam, India, Indonesia and Brazil. Major destinations of

pepper export are the US, Europe, Japan and Australia.

As a highly traded commodity, global demand and supply plays a crucial role in shaping pepper

prices. Vietnam, a new entrant to pepper crop, sharply raised the total global supply by over 100,000

ton by early years of 2000 led to a crash in pepper prices globally.

Indian pepper costing over Rupees 200 per 1 kg in 2000 fell to an average of less than Rupees 65

per 1 kg by 2005. The price seems to be firming up over the years due to the overall decline in

global pepper production.

Know Pepper Pepper, known as black gold, is an important commodity traded globally since ancient times. A

native of the Western Ghats, the fame of pepper brought traders from all over the world to the

shores of the southern Indian state of Kerala throughout history.

Kerala still accounts for over 90 percent of India’s pepper output. Karnataka and Tamil Nadu is the

other pepper producing states in India.

India was the largest pepper producer and exporter in the world till the 1990s. Vietnam emerged as

the major pepper producer and exporter by the turn of last century and dislodged India’s leadership

in global pepper trade.

Pepper

India Pepper prices hit record Rs 600 per kg on strong demand Updated 10:30 IST 08 Apr 2014

The market was taken by surprise after range bound movement in the market for

several weeks suppoted by a fall of 10,000 tons in production compared to previous

year. Indias' production is estimated at 35,000 tons this year against 50,000 tons last

year.