CHAPTER 1

INTRODUCTION

1.1 INTRODUCTION

India has been the world’s most important spice land and produces more than 60 intrinsic
variety of spices including pepper, Pepper, ginger, turmeric, chill and several seed spices like
coriander, celery, cumin etc. India is the leading producer and supplier of pepper, pepper oils &
oleoresins.

The intrinsic quality of Indian spices makes them superior to other spices in terms of
taste, flavor, aroma & Texture. With the past decade international trade in spices has quantum
leaped to more than 50,000 tones and India’s share is 40% of supplies in terms of quantity and
21% in terms of value. India exports spices to more than 100 countries. With increasing in export
of spice products, a need was felt for producing clean, hygienic and flavor spices. The focal point
of export today is a need to produce value added and quality spice products.

As mentioned earlier that India is one of the most important spice producer and exporter of a
wide variety of spices producer and exporter of a wide variety of spices in the world mostly in
bulk form, it was felt that measures should be taken to export more processed spice products, in
order to maximize foreign currency earnings.

Much of the credit for the unprecedented performance can be attributed to the efforts of
the Indian Spice exporters, unless in other field, the spices exporters have rightly focused on
quality improvement. The spices board has formed new schemes for export development.

The emergence of India as a dominant supplier of quality spices to the world market has
improved, this confidence among Indian spices exporters inspired them to venture into new
products and new markets.

1
 The economic & Political situation in the world was however not very conducive. The
Asian Tigers were under total economic turmoil, which affected the entire South East Asia.
Southeast Asia being a major market for Indian Spices, the economic situation in this region has
adversely affected our exports. The economics of Japan & America were reeling under
recession during the period resulting a total slackness in

world Hade. The political situations in many of the European Countries

Were also not helpful for a sustainable development in International trade. But our
activities were more or less steady & encouraging with respect to the Middle East countries,
South North Africa. Pepper production rose sharply from 28000 tones in 1961-62 to 55000
tones in 1990–91 & then to 58270 in 1998-99.

How ever against all odds, the Country has emerged as the singular major supplier of spices and
a dominant player in the world spice market, thanks to the liberalized economic regime and the
relentless efforts put in by the exporters. Spices board was acting as a facilitator & coordinator
between the exporting country & the government for formulating long-term policies &
innovative schemes for attaining excellence in exports.

2
1.2 Need for the Study

India basically is an agrarian economy where more than 60% of population depends on
agriculture for their livehood. Majorities of exports are of raw materials and other agricultural
products. Recently it is attempting to improve processed goods exports, which contributes more
to over foreign exchange earnings. However a package of economic reform introduced in the
name of ‘LPG’ namely liberalization privatization & globalization in India could bring the
desired results. Pepper, either known as “King of Spices” or black gold is the most commonly
used Spice in the word. Pepper is the valuable item in the International spices trade, activities of
its behalf are the best organized and most sophisticated. At the International level, the three
leading producers, India, Malaysia & Indonesia formed a activities of the Pepper Industry with a
view to achieve maximum economic developments.

The export performance by India as one of the Major producing countries is increasing
gradually because of the high consumption of pepper in food & other products like
pharmaceuticals, cosmetics etc. The existing supply not able to cover the demand that is
prevailing which has made this area of export a high profitable one. This has lead some of the
countries to concentrate on this products exports by increasing the area, output & yield under this
crop emerging as the competitors to India. This project attempts to forecast the export
performance o the different pepper exporting countries in the world India’s share in it.

1.3 Scope of the Study

This exercise on the Production & exports of pepper in the world is a maiden attempt as
the study is concerned. Although there are few words separately on export performance this
projects attempts to compare the production with relation to the policy implication. In this sense,
the study is analytical in nature.

3
 REVIEW OF LITERATURE

1. Rajasekar T (2009)
The performance of the ports plays a major role in the promotion of international trade.
Around 90% of the international cargo is transported through ships only. The main objective
of this paper is to analyse the performance of export and import traffic in Tuticorin Port Trust
(TPT) which has been a centre for maritime trade and pearl fishery for more than a century. .
The paper mainly discusses about the ports traffic performance, growth rate of port and the
performance of commodities of export and import. This paper also tries to study and compare
the efficiency of major ports in India. A case study is used in order to collect the required
information about the performance of export and import traffic of TPT. Growth of exports and
imports and other variables have been analysed by using the simple growth rate and
compound growth rates. Method of least squares was adopted to calculate the trend values.
From this study it is found that on an average the export and import traffic showed a growth
of 4.03%. Among the commodities exported general cargo accounted for 62.23% and the
major commodity imported was coal which accounted for 56.69%. Tuticorin port also
registered effective performance in container trade during the study period.
Imports &exports by commodity group ulrichkohli revised (september 1997)
Diewert and Wales have recently introduced the concept of semi flexibility. Compared to their
flexible, counterparts semi flexible functional forms allow for large savings in terms of
parameters ,while they are still able to provide second order approximations to arbitrary
functions under some conditions. We examine the empirical legitimacy of semi flexibility by
estimating the U.S demand for the imports and supply of exports by commodity group. Imports
are disaggregated into nine components, and exports in to eight. We find that the reduction in
flexibility is not incompatible with the data. This suggest that semi flexibility is a useful tool in
the estimation of large model
3.Randy b. machemehl(2009)
This study will help better our understanding of the import-export processes in the U.S. It
examines the challenges faced by US exporters and importers, and investigates an innovative
solution to tackle these challenges. The dry port concept introduced by transportation

4
geographers is discussed, and an intermodal rail costing model is used in determining whether
this concept will prove to be a more sustainable and energy efficient

2.Imports &exports by commodity group ulrichkohli revised (september 1997)

Diewert and Wales have recently introduced the concept of semi flexibility. Compared to
their flexible, counterparts semi flexible functional forms allow for large savings in terms of
parameters ,while they are still able to provide second order approximations to arbitrary
functions under some conditions. We examine the empirical legitimacy of semi flexibility by
estimating the U.S demand for the imports and supply of exports by commodity group.
Imports are disaggregated into nine components, and exports in to eight. We find that the
reduction in flexibility is not incompatible with the data. This suggest that semi flexibility is
a useful tool in the estimation of large model
3.Randy b. machemehl(2009)
This study will help better our understanding of the import-export processes in the U.S. It
examines the challenges faced by US exporters and importers, and investigates an innovative
solution to tackle these challenges. The dry port concept introduced by transportation
geographers is discussed, and an intermodal rail costing model is used in determining
whether this concept will prove to be a more sustainable and energy efficient system than
what currently exists.

5
6
 CHAPTER II

OBJECTIVES & METHODOLOGY

2.1 Objectives

Objectives of the Study are as follows,

1. To analyze the export performance of pepper from India.

2. To study about Production & export of pepper all over the world.

3. To study about the functions of Spices board & the various promotional schemes
available for pepper.

4. To study about the pepper Industry in India

5. To find out the problems & prospects of pepper exports from India.

6. To suggest remedial measures.

7
2.2 Methodology of the Study

Source of Data :

The study is mainly based on published data from government & non government
agencies. Opinions of eminent persons in the pepper field were also sought for the purpose of
the study.

Secondary Data:

The secondary data was collected form the agricultural statistics, published by ministry of
agriculture and from the economic survey of various issues. The data relating to exports by
different countries were collected from various World Bank reports. Also the spices board &
pepper exporters were consulted or further data on this project.

Tools & Techniques Used

For the Purpose of analysis simple percentage and simple arithmetic mean are used.
Technique like linear growth, compound growth rate were also used. Simple bar graphs and
pie charts were used for analysis.

8
2.3 Period of Study

Data Collected for analysis taken from the year 2020-2021

2.4 Limitations of Study

However the study hedges some limitations

a) This study depends exclusively on secondary data.

b) As the period of study is only for 2 months, time was found as a major limitation to go in
depth into the subject.

c) A Wider coverage was not possible because larger area has to be covered for collection
of data.

d) Since most of the data is collected from secondary sources, the authenticity of data will
affect the study.

e) It has drawback of aggregation.

f) The future projections assume other conditions to be constant.

9
10
 CHAPTER III

AN OVERVIEW OF INDIAN PEPPER INDUSTRY

3.1 Pepper

Pepper is a native of the Western Ghates in India. A large population of Pepper in its wild
form still thrives well in these forests. The cultivated varieties of pepper are considered to have
originated from these wild ones as a result of continuous selection followed by vegetative
propagation, The Word pepper in English, pepper in Greek, piper in Latin all were derived from
the Sanskrit word papilla which was the name of pepper (Pepper Longum), This Hindu colonist
took this plant to Java between 100BC-AD600. Its cultivation was spread to Malayan peninsula
following the European colonization during the 18th Century.

3.2 End Use of Pepper

The major use of black pepper & white pepper on a world wide basis are domestic
culinary purpose while in Industrialized western countries both forms find extensive using
flavoring of processed food. Black pepper is employed in much wide range of foodstuffs
particularly in meal products, while white pepper is used in cases where dark particles are
undesirable such as in light colored cream soups. Some of the pepper is used whole but the
greater volume of both form is comminuted before use either for domestic culinary purpose as
far seasonal processed foods. Pepper Oleoresin is obtained by solvent extraction of black pepper
& is prepared both in certain industrialized western Countries & in some of

13

the spices producing countries. The Organoleptic properties of the spices are used for the
flavoring of processed food. A small quantity of pepper oleoresin is used in certain
pharmaceutical formulations. Black pepper oil is distilled in relatively small quantities in the
major spice importing countries. It finds application in food flavoring and perfumery.

11
3.3 Medical Application of Pepper :

a) Heating Coconut oil with pepper cons can mitigate itching of body. To treat dandruff, mix
pepper with one tablespoon milk & apply on scalp. Rinse after 15 minutes.
b) Mix powdered pepper & fenugreek. Applying this on the head will remove dirt from the hair,
helps hair growth & gives a cooling effect.
c) Crushed pepper vine mixed with water is used as a herbal shampoo.
d) Leaves of pepper are passed over a flame till their color fades out, place these leaves on styes
on the eyelids thrice a day, the styes will disappear.
e) Pepper salt & the charred husk of paddy are mixed together for use as dry tooth powder,
which is effective.
f) Pepper vines crushed with hibiscus leaves and flower can be used as herbal hair wash.
g) It helps in cure acne, good for haggered skin & sallow skin, activates blood circulation,
stimulator the follicles. Its astringent fighter & toner.
3.4 Post Harvest Operations

Harvesting is the last stage of pepper cultivation. After harvesting i.e Pepper, they
separate the berries. Drying is the next process after separation. After drying, an inferior element
from pepper is separated; this process is known as winnowing. After winnowing, bagging is done
keep the pepper in different types of bags. After bagging, the bags go I three different ways.
Firstly it goes to a village shop, secondly it goes to i.e. co-operative center & thirdly it directly
goes to the collection center. From village shops it goes directly to the consumers as well as
collection center. But from the co-operative center it goes to the state apex society form there it
goes for grading, inspection & export and thirdly it goes to election center. Firstly, it directly
goes to exporter hand & secondly it goes to terminal markets. Calicut, Kannoor, Allapey are the
main terminal markets for pepper. From terminal markets, it directly goes to the commission
agent. From commission agent it goes to broker & from broker it goes to dealer. From dealer
only it reaches exporters hand in direct process. Then the exporter does garbling & grading.
After grading inspection will be done. After Inspection only the exporter will export pepper.

12
3.5 Indian Pepper Industry

India has been the international trade of pepper since 4000 BC. The

movement of spices in India past was through the land routes later on with the help of sailing
vessels & cargo ships & recently by air also. The trade which developed with Egypt and other
Arabian Countries, was oriented towards the west, with the discovery of sea route to India round
the Cape of Good Hope by the European explores. Among the spices exported, pepper has the
leading position in terms of quality & value realized. Indian pepper called Malabar black pepper
is popular in the international market. Her share in the world has gone up steadily in recent years
to a high as 34%, because of these inherent qualities of Indian Black pepper; there are heavy
exports to USA, Western Europe and Russia. The Malabar Garbled Extra bold is world famous
because of its maximum size & high quality and preference to use it by food processing
industries in western countries.

Among all the states in India, if south commands, sole or near monopoly in the
production of pepper, ginger Pepper & turmeric there are a number of other spices which are
contributed by North India in sizeable quantity. This is because of the variation from tropical to
subtropical and too temperature. Pepper production in India has an all time record of 61500 tones
in 1996. India contributes above 35% of the world’s exports. The southern most state Kerala
accounts for about 88% production in India. The neighboring states Karnataka, Tamilnadu, &
Union Territories of Pondicherry, Andaman & Nicobar Islands, contribute the rest of it.

Pepper cultivation is mainly taken up in Kerala. Important district growing pepper in

Kerala is Trivandrum, Kollam, Idukki, Kannore and Calicut. About 95% of areas of cultivation
of the crop in India are

13
presently in Kerala. Development of cultivation in TamilNadu & Karnataka has been in areas
adjoining Kerala. It is now grown in larger areas in Nilgiris and Kanyakumari districts of
Tamilnadu, Kodaku, Dakshina Kannada and UtharaKannaa. The cultivation has spread from
Karnataka to Kongan region, Maharashtra & Goa. It has further been extended to certain pockets
in Pondicherry, Andra Pradesh, Orissa, Assam, Tirupur, Meghalaya, Andaman& Nicobar Islands
recently.

Even though production is decreasing annually compared to the past, the price of the
pepper goes on increasing. This shows the favorable trade for pepper industry and for Indian
exports.

3.6 Area and Production of Pepper in India

Pepper production rose sharply from 28000 tones in 1961-1962 to 55000 tones in 1990-
91 and the to 62500 tones in domestic market are growing up. This may be due to reduced
production in Indonesia & limited supply from Brazil. The growth has had been steadily as it
shows continuous fluctuation. The unit value realization of pepper during 1998 -99, increased to
180.32/Kg from 136.4/Kg India’s contribution to the European union (EU) Pepper is 12%. The
Indian Pepper has shown a Zigzag graph in terms of exports.

14
15
 SPICES BOARD ROLE & RESPONSIBILITIES

6.1 Constitution of the Board

The board consists of,

1. A Chairman

2. Three Members of Parliament elected by house of people and one by Council of States.

3. Three members to represent ministries of Central Government dealing with

a) Commerce

b) Agriculture

c) Finance

4. Seven members to represent growers of spices.

5. Ten members to represent exporters of spices.

6. Three members to represent major spice producing states.

7. Four members one each represent

a) Planning Commission

b) Indian Institute of Packaging (Mumbai)

c) Indian Institute of Spices Research (Calicut)

d) Central Food Technological Research Institute.

8. One Member to represent Spices Labor Interest.

16
6.2 Statutory Committee of the Board

These include mainly 3 committees for the board.

1. Executory committee.

2. Research & Development Committee for Pepper

3. Market development Committee for spices.

6.3 Administration.

Personnel of the Board (As on 31 March 2013)

Shri. V. Jayashankar (TAS) continued as the chairman during the year. Dr. CK. George
continued as executive director & Shri V.K.K. Nair continued as secondary of the board. Shri
K.P.G. Menon, was given charge as Director (Marketing) Dr. S.N. Potty as Director (Research)
Dr. Koshy John as Director (Development). Shri K.P. Somashekaran Joint Director of finance
last year was promoted to Director of finance.

As on 31 March 2008 Staff strength of the board was 624, consisting of 82 group ‘A’
other 103 Group ‘B’ officers, 406 group ‘C’ officers, 33 Group ‘D’ staff other than above 13
staffs were working in different projects.

6.4 Offices of the Board

The head office of the board is located at Cochi. The Kerala Eleven regional offices of
the board headed by a Joint Director of Saklespur, Deputy director at Cochin, Gangkok,
Gowahtai, Ahemedabed, Secundrabad, Mumbai, New Delhi & Chennai, Assistant directors at
Calcutta and Unjha functioned during the year.

The 14 zonal offices headed by Assistant directors are located at Trivandrum,

Muvattupuzha, Trichur, Bodinayakanur, Vandanmettu, Chickmagaore, Calicut, Madikeri,
Shimoga, Guntur, Tadaong, Manjch, Kahmpong & Jorethang, also continued their functioning

17
during the year. Besides, market development office headed by Asst. Directors at Marcara,
Bodinayakanur, Ganjtok & Market intelligence office at Tuticorin, Muvattopuzha, functioned
during the year. The board also operated 34 field unites & 3 extension counters. It has
maintained 5 departmental nurseries in Karnataka & 2 in Kerala, Main Research stating headed
by director (Research) at Myladumpara & regional stating headed by senior scientists at sikkin,
Sakleshper, Tandiankudiga were also functioning.

6.5 Functions of the Board in accordance with spices board act 1986

(i) Develop, promote and regulate spices export.

(ii) Grant certificate for spices export.

(iii) Undertake programmes and projects for promotion and export of spices.

(iv) Asst and encourage studies & Research for improvement and processing, quality
techniques of grading and packaging of spices.

(v) Strive towards stabilization of prices of spices for export.

(vi) Evolve suitable quality standards and introduce certification of quality through
quality marketing of spices for export.

(vii) Control quality of spices for export.

(viii) Give licensees to such terms and conditions as may be prescribed to the manufactures
of spices for export.

(ix) Market any spice if it considers necessary in the interest of promotion of export.

(x) Provide wear-housing facilities abroad for spices.

(xi) Collect statistics with regard to spices for compilation & publications.

(xii) Import with prior approval of Central Government any spice for sale.

18
 (xiii) Advice Central Government on matters reality to import and exports of spices.

Its other functions include,

1. Promote co-operative efforts among growers of Pepper

2. Ensure remuneration return to growers of Pepper

3. Provide financial assistance to improved methods of cultivation and processing of Pepper

4. Regulate sale of Pepper and Stabilization of prices of Pepper

5. Provided training in Pepper testing and fixing gardens.

6. Improve marketing of Pepper

7. Undertake, assist and encourage scientific, technological and economic research.

8. Register and license brokers of Pepper and persons enjoyed in business of Pepper

6.6 Promotional measures of the Spices Board

A. Indian Spices Logo

The logo spice is prominently displayed on all packs cleared and approved by the Spices
Board of India, one can easily sport the pack that spells Indian ness and quality. The Board
awards then logo selectively to exporters who have certified processing and quality control
capability to maintain a high level of hygiene and sanitation at all stages.

B. The Spice House Certificate (Certificate of Excellence)

The latest in the Board’s campaign for quality up gradation of the introduction of the
Spice House Certificate. The certificate is issued to those processor/exporters, who have a
genuine commitment to quality, and whose long-term objective is sustained export growth. The

19
products covered by certification program include whose spices as well as value added products
like spices mixes, ground spices, curry blends, spice oils and oleoresins.

C. ISO 9002 Accreditation for Spices Board Quality Tab

The quality evaluation Lab has acquired ISO 9002 certification form British Standards
Institution. Equipped with the most advanced equipment’s and facilities, the lab provides
analytical service to Indian spices industry so that it can meet the requirements of international
customers. The lab is also competent to analyze spice and spice products as per the norms of the
most international quality monitoring agencies.

D. Brand Name Registration

In the global market, large number of traders are competitive with each other for
visibility and prominence in the market. Visual appeal is critical in winning consumers attention
and for this packaging is the best medium that communicate silently to the consumer. Selection
of the package is therefore an equally important task or the process of design, preparation and
processing of a product. Market requirements and market needs coupled with distribution
practices and shelf life f the product play a significant role in the selection of the packaging
system, in order to assist the exporters in selection of consumers pack and brand names and to
promote the export the export in branded consumer pack and protect the individual brands, board
has introduced a system to register their brand names with spice board. Registration of brand is
given to those packs which satisfy stipulated standards of packaging, labeling. The board in
consultation with Indian Institute of packaging, Mumbai has specified norms for packing and
standard for material design etc., To assist exporters who are exporting / indents to export spices
an spice products in branded consumer packs.

E. Other Promotional Measures :

1. Promote co-operative efforts among growers of Pepper

2. Ensure remuneration return to growers of Pepper

3. Provide financial assistance to improved methods of cultivation and processing of Pepper

20
4. Regulate sale of Pepper and Stabilization of prices of Pepper

5. Provide training in Pepper testing and fixing grades.

6. Improve marketing of Pepper

7. Collect statistics from growers and dealers and such other persons.

8. Secure better working conditions and improvement of amenities and incentives for workers.

9. Advisory Scheme

The scheme envisages to provide technical guidance to support the growers on scientific aspect
of cultivation for attaining better production, higher productivity of Pepper and post harvest
improvement of spices having export potential by disseminating technical know how through
regular field visit, farmer meetings and campaigns etc.

10. Pepper replanting scheme

The scheme is intended to encourage small and marginal growers to take up re-plantation of old
and uneconomic plantation by systematic replanting.

11. Irrigation and land development program in Kerala, Karnataka, and Tamil Nadu. The
programme aims at developing permanent water source in Pepper plantation by construction
water storage device like farm ponds, well etc., and installing irrigation equipments, soil
conservation and a forestation.

13. Post-harvest improvement of Pepper

6.7 Various Schemes Under Operation

a. Scheme for technology transfer and process up gradation.

Eligibility : Registered exporters.

b. Scheme for assistance for R&D efforts

Eligibility : Registered exporters.

21
c. Scheme for adoption of High-Tech in Spice processing

Eligibility : Registered exporters.

d. Scheme for assistance for stall rent for participation in international food fairs.

Eligibility : Registered exporters.

e. Scheme for setting up / up gradation of lab / facilities for monitoring pesticide residues /
adopting ISO 9000

Eligibility : Registered manufacturer exporters.

f. Scheme for adopting HACCP quality control system

Eligibility : Registered manufacturer exporters.

g. Scheme for purchase of power generator

Eligibility : Registered manufacturer exporters.

h. Scheme for Product promotion abroad

Eligibility : Exporters whose brands are registered with Board / Logo holders.

i. Scheme for packaging development

Eligibility : Exporters whose brands are registered with Board / Logo holders.

j. Scheme for assistance of sales promotion tours abroad

Eligibility : Exporters whose brands are registered with Board / SHC / Logo holders.

K. Scheme for financial assistance for printing brochures / folders.

Eligibility : SHC/Logo Exporters.

l. Reimbursement of Air Freight/Courier charges for sending samples abroad.

22
Eligibility : SHC/Logo Exporters.

m. Scheme for promotion of gift/tourist packs of Indian spices with Quality logo

Eligibility : Logo Exporters.

n. Scheme for Brand Promotion

Eligibility : SHC/Logo Exporters.

o. Scheme for providing modern cleaning, processing and storage facilities at terminal markets.

Eligibility : General Scheme for association of Exporters, farmers, Agriculture Produce Market
Committees (APMACs) etc.

Thus spices board through its various export promotion schemes and through various functions
help to increase the export of spices and spice products day by day.

23
 RESEARCH
METHODOLOGY

24
 CHAPTER IV

RESEARCH METHODOLOGY

INTRODUCTION

Research is the process of systematic and in depth study or search for any particular
source of studying. How the research is done scientifically and the steps that are generally
adopted backed by the collection, presentation and interpretation of details.

Research methodology is a way to systematically solve the research problem using

research methods through which solutions are arrived for the problems for the research.

RESEARCH DESIGN

Research design is the arrangement for collection and analysis of data in a manner that
aims to continue relevance to research purpose with economy in procedure.

DATA SOURCE

Data collection is one of the most important aspects of research. For the success of any
project accurate data is very important and necessary.

THE DATA’S ARE COLLECTED THROUGH:

 Secondary Data

SECONDARY DATA:

Secondary data is used for the purpose of the project study. These data are collected from
the reports of the Spices Board and from various journals, magazines, newspaper and websites,
which gave lots of information to complete this, project a successful one.

TOOLS AND TECHNIQUES USED

The data analyzed through the application of various statistical tools such as percentage,
ranking and trend projection method.

25
 ANALYSIS AND
INTERPRETATION

26
 CHAPTER NO-V

ANALYSIS AND INTERPRETATION

TABLENO5.1

PEPPER

Country 2016- % Rank 2017- % Rank 2018- % Rank 2019- % Rank 2020- % Rank
17 18 19 20 21
(MT) (MT) (MT) (MT)

USA 13886 70.7 1 14496 69.01 1 9979 65.38 1 8638 66.44 1 6921 62.47 1

UK 2003 10.2 2 1818 8.66 2 1514 9.92 2 1604 12.34 2 1477 13.33 2

Germany 1406 7.15 3 1691 8.05 3 1201 7.87 5 1029 7.91 3 715 6.45 5

Italy 1251 6.36 4 1601 7.62 4 1288 8.44 3 834 6.41 5 900 8.12 4

Canada 1107 5.63 5 1397 6.65 5 1281 8.39 4 896 6.89 4 1066 9.62 3

TOTAL 19653 100 21003 100 15263 100 13001 100 11079 100

INTERPRETATION
The above table indicates that, out of the total exports of pepper from India, 60-70% is
exported to USA. When the importing countries are ranked based on their volume of imports
from India, USA stands first in all five years. During the years, it is found that the ranks remain
the same. First rank is occupied by USA followed by UK, Germany, Italy, and Canada. During
the next three years first two ranks are occupied by USA and UK while the other three ranks vary
among Germany, Italy and Canada.

It is clear that out of the total pepper exported from India, 60-70% is exported to USA
and 9 to 13% is exported to UK.

27
 Chart 5.1

90000
Series15
80000
Series14
70000 Series13
Series12
60000
Series11
50000 Series10
40000 Series9
Series8
30000 Series7
20000 Series6
Series5
10000 Series4
0 Series3
ER ry y ly da L Series2
nt US
A UK an Ita TA
PP u m ana O Series1
PE Co Ge
r C T

28
 EXPORT OF PEPPER TO USA: 5.2

Years Quantity(MT) %

2016-17 13886 25.75

2017-18 14496 26.88

2018-19 9979 18.51

2019-20 8638 16.02

2020-21 6921 12.84

TOTAL 53920 100

INTERPRETATION
USA is the major importer of Pepper from India.

The table shows that the total quantity of pepper imported by USA from India during the
study period is 53920 metric tons out of which 25.75% relates to 2017-08. It has risen by 1.13%
in the next year 2019-20. Where as in all the subsequent years the percentage of its imports of
pepper from India shows a decrease.

29
 CHART NO:5.2

60000

50000

40000

30000 Series1
Series2

20000

10000

0
Years 2016-17 2017-18 2018-19 2019-20 2020-21 TOTAL

30
 PEPPER

Country 2016- % Rank 2017- % Rank 2018- % Rank 2019- % Rank 2020- % Rank
17 18 19 20 21
(MT) (MT) (MT) (MT)

S. Arabia 478 84.0 1 331 80.53 1 519 89.02 1 1118 83.12 1 724 81.25 1

Japan 38 6.67 2 16 3.89 5 25 4.28 3 34 2.52 5 26 2.91 3

Kuwait 14 2.46 3 18 4.37 3 4 0.68 5 92 6.84 2 102 11.44 2

UK 21 3.69 4 17 4.13 4 7 1.20 4 55 4.08 3 18 2.02 5

Malaysia 18 3.16 5 29 7.05 2 28 4.80 2 46 3.42 4 21 2.35 4

TOTAL 569 100 411 100 583 100 1345 100 891 100

TABLE NO:5.3

INTERPRETATION
The above table shows that, out of the total exports of PEPPER from India, 80-90% is
exported to Saudi Arabia. When the importing countries are ranked based on their volume of
imports from India, Saudi Arabia stands first in all five years. During 2006-2008, it is found that
the third and fourth rank remains same. During years the second rank occupied by Kuwait. First
rank is occupied by Saudi Arabia followed by Japan, Kuwait, UK, and Malaysia.

During the five years first rank is occupied by Saudi Arabia while the other four ranks
vary among Japan, Kuwait, UK and Malaysia.

It is clear that out of the total PEPPER exported from India, 80-90% is exported to Saudi
Arabia, 2 to 7% is exported to Japan and 1to 12% is exported to Kuwait.

Chart 5.3
31
4500
Series15
4000 Series14
Series13
3500
Series12
3000 Series11
Series10
2500 Series9
2000 Series8
Series7
1500 Series6
Series5
1000 Series4
500 Series3
Series2
0 Series1
PEPPERCountry S. Arabia Japan Kuwait UK Malaysia TOTAL

32
 EXPORT OF PEPPER TO SAUDI ARABIA-5.4
Year
Quantity(MT) %

2016-17 478 15.08

2017-18 331 10.44

2018-19 519 16.37

2019-20 1118 35.27

2020-21 724 22.84

TOTAL 3170 100

INTERPRETATION
The above data indicates that the export of PEPPER to Saudi Arabia because Saudi
Arabia is the largest importer of PEPPER from India.

33
 Chart No:5.4

3500

3000

2500

2000
Year %
Year Quantity(MT)
1500

1000

500

0
2016-17 2017-18 2018-19 2019-20 2020-21 TOTAL

TREND PROJECTION OF PEPPER

34
 EXPORT OF PEPPER TO USA

TABLE NO: 5.5

Year Trend

-48580
2016-17

2868.8
2017-18

890
2018-19

-1088.8
2019-20

-3067.6
2020-21

INTERPRETATION
The above table shows that, there is a fluctuation in the export of pepper from India to
USA was in fluctuating trend in the year2016-21. And it is expected to decrease in further future
years.

CHART NO: 5.5

35
 Chart Title
10000

0
Year 2016 2017 2018 2019 2020
-17 -18 -19 -20 -21
-10000
Series1

-20000

-30000

-40000

-50000

36
 EXPORT OF PEPPER TO UK

TABLE NO:5.6

Year Trend

1303.4
2016-17

1176.8
2017-18

1050.2
2018-19

923.6
2019-20

797
2020-21

INTERPRETATION
The above table indicates that, there is a fluctuation in the export of pepper from India to
UK was in fluctuating trend in the year 2016-21. And it is expected to decrease in future years.

37
 CHART NO: 5.6

Chart Title
1400

1200

1000

800 Series1

600

400

200

0
Year 2016-17 2017-18 2018-19 2019-20 2020-21

EXPORT OF PEPPER TO GERMANY

38
 TABLE NO: 5.7

Year Trend

595.2
2016-17

390.8
2017-18

186.4
2018-19

-18
2019-20

-222.4
2020-21

INTERPRETATION
The above table indicates that, there was a decrease in the export of Pepper form India to
Germany was in decreasing trend up to the year 2021. And it is expected to decrease in further
future periods.

CHART NO: 5.7

39
 Chart Title
600
500
400
300
Series1
200
100
0
Year 2016-17 2017-18 2018-19 2019-20 2020-21
-100
-200
-300

40
 EXPORT OF PEPPER TO ITALY

TABLE NO: 5.8

Year Trend

734.1
2016-17

587.2
2017-18

440.3
2018-19

293.4
2019-20

146.5
2020-21

INTERPRETATION
The above table mentions that, there is a fluctuation in the export of Pepper from India to
Italy was in fluctuating trend in the year 2016-21. And it was expected to decrease in further
future years.

41
 CHART NO: 5.8

Chart Title
800
700
600
500
Series1
400
300
200
100
0
Year 2016-17 2017-18 2018-19 2019-20 2020-21

EXPORT OF PEPPER TO CANADA

42
 TABLE NO: 5.9

Year Trend

974.5
2016-17

916.2
2017-18

857.9
2018-19

799.6
2019-20

741.3
2020-21

INTERPRETATION
The above table indicates that, there is an increase and decrease in the export of pepper
from India to Canada in the year 2016-2021. And it is expected to decrease in future.

CHART NO: 5.9

43
 Chart Title
1000
900
800
700
600 Series1
500
400
300
200
100
0
Year 2016-17 2017-18 2018-19 2019-20 2020-21

44
 TREND PROJECTION OF PEPPER

EXPORT OF PEPPER TO SAUDI ARABIA

TABLE NO: 5.10

Year Trend

1017.7
2016-17

1145.6
2017-18

1273.5
2018-19

1401.4
2019-20

1529.3
2020-21

INTERPRETATION
It is clear from the table, there is a fluctuation in the export of PEPPER from India to
Saudi Arabia was in fluctuating trend in the year 2011-2016. And it is expected to Increase up to
1529.3 for the year 2016-2021.

45
 CHART NO: 5.10

Chart Title
1600
1400
1200
1000
Series1
800
600
400
200
0
Year 2016-17 2017-18 2018-19 2019-20 2020-21

EXPORT OF PEPPER TO JAPAN

46
 TABLE NO: 5.11

Year Trend

26
2016-17

25.4
2017-18

24.8
2018-19

24.2
2019-20

23.6
2020-21

INTERPRETATION
The above table shows that, there is a fluctuation in the export of PEPPER from India to
Japan was in fluctuating trend up to the year 2016-21. And it is expected to decrease in further
future years.

47
 CHART NO: 5.11

Chart Title
30

25

20
Series1
15

10

0
Year 2016-17 2017-18 2018-19 2019-20 2020-21

EXPORT OF PEPPER TO KUWAIT

48
 TABLE NO:5.12

Year Trend

121
2016-17

146
2017-18

171
2018-19

196
2019-20

221
2020-21

INTERPRETATION
The above table shows that, there was an increase in the export of PEPPER from India to
Kuwait was in increasing trend in most of the years. And it is expected to increase in further
future years.

CHART NO:5.12

49
 Chart Title
250

200

150 Series1

100

50

0
Year 2016-17 2017-18 2018-19 2019-20 2020-21

EXPORT OF PEPPER TO UK

50
 TABLE NO:5.13

Year Trend

2016-17 44

2017-18 50.8

2018-19 57.6

2019-20 64.4

2020-21 71.2

INTERPRETATION
It is clear from the table, there is a fluctuation in the export of PEPPER from India to UK
was in fluctuating trend up to the year 2016-17 and decreased in the year 2016-17. And it is
expected to Increase up to 71.2 for the year 2020-2021.

CHART NO: 5.13

51
 Chart Title
80
70
60
50
Series1
40
30
20
10
0
Year 2016-17 2017-18 2018-19 2019-20 2020-21

EXPORT OF PEPPER TO MALAYSIA

52
 TABLE NO: 5.14

Year Trend

35.3
2016-17

37.6
2017-18

39.9
2018-19

42.2
2019-20

44.5
2020-21

INTERPRETATION
The above table shows, there is a fluctuation in the export of PEPPER from India to
Malaysia was in fluctuating trend up to the year 2019-20 and decreased in the year 2016-17. And
it is expected to Increase in future years.

CHART NO: 5.14

53
 Chart Title
45
40
35
30
25 Series1

20
15
10
5
0
Year 2016-17 2017-18 2018-19 2019-20 2020-21

CHAPTER VI

FINDINGS & SUGGESTIONS

54
6.1 Problems faced by pepper Industry

A. Pre harvest problems

(i) Losses due to pests and diseases.

(ii) Inadequate supply of planting materials of improved varieties.

(iii) Lack of proper maturing.

(iv) Non-adoption of other agronomic practices.

(v) Extension and technology constraints.

(vi) Early harvest.

B. Post harvest problems

Spices in general, except Pepper are dried in sun. Scope for grading lies in the use of
solar drier under hygienic conditions. Not much grading is done at form level ad therefore there
is no control over drying conditions. The growers require advise on harvesting, pre-cleaning,
grading, drying, packing and storage.

C. Manufacturing Problems

The pepper industry in India lacks skilled persons manufacturing and processing sectors.

The use of primitive technology by certain firms results in high of production and
variation in quality of products.

D. High-Cost packing material

As we know the major pepper importing countries are developed countries, so while
marketing products to those countries, certain specifications and parameters will have to be

55
followed by regarding packing. The high cost, quality-packing material is not easily available in
our country.

E. Quality Problems

(i) Chlorinated pesticides :

These problems mainly occur because of improper usage of pesticides in agriculture

production and also while storing the whole spice.

(ii) Ethylene Oxide :

Improper fumigation product can create this problem.

56
 6.2 Prospects

Pepper is the most important spice in international trade. The past trend indicates that
there is an annual growth of 2.3% in world trade and at this rate the total world trade by 2005
AD would be 2,10,000 tones. So by increasing the production and productivity India can earn
more foreign exchange from pepper exports. India exports pepper to developed countries like
USA, France, Germany etc, which follow stringent regulations that only safe food products
under hygienic conditions are imported. So by producing quality pepper and also promotional
programmes to increase the per capita consumption of pepper in these countries, we can increase
our pepper exports, India can produce value added products. By adopting suitable promotional
activities, the export of these products can be increased in future.

57
 6.3 Findings

The study of the Industry and various problems faced by pepper exporters brings to light
the following aspects

(i) Pepper contributed around 18% in quantity and 35% in value of total spices exported from
India.

(ii) The production of pepper from India remains more or less stagnant.

(iii) Due to recession in the world, Indian industry is facing competitive problems from other
producing countries.

(iv) Largest producer of pepper in the world is India.

(v) Largest exporter of pepper in the world is India followed by Indonesia.

(vi) Production of white pepper in India is negligible.

(vii) In India, Kerala State accounts for 88% of the total production.

(viii) Largest area of pepper cultivation in the world is in India.

(ix) World demand for pepper is higher than supply of pepper.

(x) India is the largest producer of pepper products like pepper oleoresin, pepper oil and green
pepper products.

(xi) Indian exporters generally export to intermediaries in buying countries. Only a few
companies in India market products in their own brand name.

(xii) USA is the largest buyer of pepper from India.

(xiv) Netherland is the largest buyer of pepper in EEC from India.

58
6.4 Suggestions

A) The international spice community may be effectively informed of the efforts taken by Indian
spices industry for export of quality spice. This can be achieved by deputing
delegation/participation in fairs/publication in mass media delegation/representation should be
equipped to handle technical matters especially with reference to the quality of spices.

B) The ongoing activities of training farmers on quality aspects should be continued.

C) Pre harvest problems like early harvesting; educating the agriculturists should control heavy
use of pesticides.

D) Post harvest handling is to be improved by cleaning, separating, drying, grading and packing.

E) Productivity has to be increased by using scientific and improved method of cultivation.

F) Start new plantation in non traditional areas so as to generate sufficient exportable surplus.

G) Price understanding with the members of the international pepper community should be
arrived at to stabilize price of pepper in the world market.

H) A comprehensive promotional program to increase the per capita consumption of pepper in

importing countries together with new markets should be organized.

I) Value addition of pepper should be promoted in view of the increasing world demand for
exports.

J) The role of spice in medicine and health is not well understood although some countries have
been carried out turmeric, pepper and chillies. Greater attention is required in future in these
areas.

K) The spices for cosmetics and perfumery value as well as for body and body care are known
form ancient days. This should be promoted by use.

L) New markets should be identified and better promotional measures should be resorted to, in
order to bring awareness about the products in these markets.

59
60
 CHAPTER VII

CONCLUSION

India is basically being a agrarian economy, which still more than 60% of population
depends on agriculture for their livelihood could export no other than the agricultural goods. The
economic reforms like liberalization, privatization and globalization in India helps the India for
development.

The export performance of pepper by India as one of the major producing countries
increasing gradually because of the high consumption of pepper in food and other products like
pharmaceutical cosmetics etc.

The study covering the main pepper consuming countries is that India, as potentially
larger producer and exporter of pepper and is allied products has become a significant factor in
the world market and will play an important role in the future development of world trade in
pepper products. As a result India entering the principal world market with satisfactory quality,
pepper in the consumer countries have reassessed their position and in general have indicated a
preference for importing pepper and its allied products.

Pepper ahs established itself as a true foreign exchange earner. Out of the total exports of
prices, pepper has a major share in quantity and in value wise. Indian pepper is treated as a
premium produce and premium price is charged for Indian pepper. Because of the natural colour
and high quality of Indian pepper in the world market prefers Indian pepper.

61
62
 BIBLIOGRAPHY

1. Spices statistics - Spices oard, Kochi.

2. Spices Export Review - Spices Board, Kochi.

3. Spices Board Annual Report - Spices Board, Kochi.

4. Facts for you.

5. Spices weekly - Spices Board, Kochi.

6. Spices Statistics :

International Pepper Community, Jakarta.

63