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Pepper plants are indigenous to India’s Malabar Coast. Hence, India has always played a dominant role in global pepper trade. Even in ancient times, black pepper was exported from India in huge quantities – something that finds mention in ancient Sanskrit literature. In fact, black pepper is one of the oldest spices known to mankind and is widely used all around the world. And although the Indian government doesn’t incentivise exports much, exporting pepper is still a massively profitable business

Even today, walk through the spice market in Kochi and you will get a sense of the rich history around black pepper, the chase for which had led to many voyages and conquer of many lands. Sit down with octogenarian tradersprofit estimate for pepper exports- We and you would be amazed to hear tales regarding pepper’s history – from how it was used to repay debt to being the primary commodity money, from which it derived its name ‘black gold’. Due to being restricted to certain geographies, pepper cultivation and trading was a monopoly of a few until modern times and was one of the main reasons why European and Arab traders were drawn towards the Kingdom of Travancore. Until then, the rulers of the kingdom had monopolised the trading of pepper produced in the region. The importance of pepper to the Travancore exchequer can be gauged from the fact that the kingdom even fought a war against the Dutch East India Company in 1741 to secure the royal monopoly over it.

To suit every taste The major traded variants of the commodity are black pepper, white pepper, organic black pepper, green pepper, pepper powder, pepper oleoresins, pepper oil and pepper in brine. A pepper vine can grow as high as 10 metres and pepper berries are plucked after they turn yellowish-red in colour. The whole peppercorns, when ground, yield black pepper. On the other hand, white pepper is obtained by removing the outer flake of the ripened berries. The flavour of white pepper is less pungent than black pepper. Similarly, green pepper is obtained from fresh berries of the pepper vine. Black and white pepper have two main components – oil and piperine, which is the source of the pungency. Black pepper contains anywhere between 0.6% to 2.6% essential oils that have the aromatic flavour of black pepper but not the pungency. The level varies depending on the India's pepper trade, maturity and variety. Black pepper has many applications – as flavouring and seasoning agents and as preservatives. It also has certain medicinal properties – from being used as a stimulant to improve appetite to being used to fight nausea.

 Other allurements In India, major pepper markets are located in Cochin, Alleppey, Calicut, Nedumangad, Konni, Adoor, Pala, Tellicherry, Kanjangad and Kasaragod in Kerala and, of course, Mumbai. According to estimates, India consumes about 40,000-45,000 MT black pepper every year, making it, by far, the largest consumer of the spice. India also exports pepper to US, Europe, Australia and Middle East.  

“High domestic demand has meant that India has become more of a pepper processor in recent years”

However, India’s pepper production has failed to keep pace with the high domestic consumption and export demand. In fact, what might be a shock to many is the fact that India’s net pepper harvest has not changed in the last two decades, at least that’s what the Spices Board of India claims. As a result, India imports large volumes of the spice from countries like Vietnam, which has very little domestic consumption. Highlighting one of the reasons behind the lack of growth in Indian pepper production, Jojan Malayil, Managing Director, Bafna Enterprises, told us.

“Today, farmers prefer crops like cardamom as it ripens much quicker than pepper, which takes two to five years to yield.” Similarly, T. T. Thomas, an Idukki-based farmer, who has won a national award for developing a disease-resistant and high-yield variety of pepper called Pepper Thekken, said, “Diseases in pepper vine is discouraging farmers to pursue the crop. It is also much more expensive to harvest the pepper crop. We don’t get much support from the Spices Board. Due to such lack of encouragements, not many farmers are interested in growing pepper.” Thomas thinks Vietnam has a much better model for pepper cultivation.

Legacy benefits As a result of sustained demand and stagnant production, India has started importing pepper in massive quantities. In fact, in FY2013, India imported over $100 million worth of pepper (neither crushed nor ground) – almost 25% more than what it exported. This, despite Indian import duty on pepper being, by far, the highest in the world. On the other hand, when it comes to processed pepper (crushed or ground), India’s exports have been growing at a CAGR of 21.95% over the last 10 years.

India is still an attractive destination for spice processing and extraction and other value additions. Due to established infrastructure and availability of skilled manpower, we have set up our plants here. Interestingly, from being the biggest exporter of pepper (neither crushed nor ground), India has now become the 2nd biggest exporter of processed pepper (crushed or ground). “India doesn’t produce enough pepper to cater to both domestic and export markets. Hence, we import pepper from markets like Vietnam, process it and then re-export it. However, India has one of the highest import duties and hence we have to re-export our products within 120 days to avail duty exemption,” Malayil added. With the emergence of Vietnam and other South-East Asian countries, India has completely lost control over the price of pepper. Lamenting this, Shailesh M. Shah, Director, Jabs International.

“Earlier, Indian pepper, particularly the Malabar varieties, used to fetch a premium over other varieties. But ever since Vietnam entered the market, with lower priced crop, Indian traders are facing severe pricing pressure because of the domestic price being very high due to high local demand.” 

Despite odds Apart from high domestic demand and stagnancy in production, sudden spurt in pepper prices in the domestic market has also forced pepper exporters to look overseas for sourcing. According to a Spices Board of India report, about 58,000 MT of pepper was produced in India in FY2014. However, industry insiders claim the actual crop was much lower at around 40,000-45,000 MT, almost all of which was consumed domestically. A glaring example of such spurts was when domestic pepper prices shot up to Rs.638.38/kg in April 2014 from Rs.532.08/kg just a month before. What’s more interesting, however, is that the industry is divided on what caused this spurt. While some attribute it to a poor crop, some blame it on uncertainties over the fate of around 6,000 MT of pepper, which the FSSAI had, last year, seized from various warehouses of NCDEX. Despite such challenges, one of the main reasons why pepper exports from India still continue is the government’s various export incentive schemes such as Focus Market Scheme (FMS), Duty Drawback Scheme and Vishesh Krishi and Gram Udyog Yojana (VKGUY), which often absorb a bit of the price shocks. None’s fiefdom In India, pepper trading had always been dominated by a small group of traders, with well-established networks in major pepper producing regions of Kerala, Karnataka and Tamil Nadu. However, in recent times, large corporate houses are trying to enter the business and break the monopoly of a select few. Validating this, Reliance Commodities’ Narchal added, “The entry of corporate houses has helped many pepper exporters meet demand and avoid uncertainties. We bring-in expertise and technology to make pepper available for those with high demand.” And since historical entry barriers are now being broken, there’s no reason why you can’t be a protagonist in this profitable change.

Black pepper

Black pepper is a common flavoring and cooking ingredient that is prized for its acrid and somewhat spicy flavor. It is manufactured from the dried fruit of the pepper plant, which is indigenous to India and is grown in other tropical areas all over the world.

A common ingredient in many dishes, black pepper has been utilized for ages in different cuisines all over the world. The dried peppercorns are used to mill it in both its full form and a powdered form. Including soups, sauces, marinades, rubs, and other foods, it is used to enhance flavor and aroma in a range of dishes. On the table, it is frequently used as a condiment to season meals to taste.

Why black pepper is good for you?

Due to its natural constituents and antioxidant capabilities, black pepper has been linked to a number of potential health advantages. Black pepper may be beneficial to you for a number of reasons, including:

Natural substances like piperine, which has antioxidant effects, are found in black pepper. Free radicals can injure cells and lead to a number of health problems, including chronic illnesses like cancer, cardiovascular disorders, and neurological diseases. Antioxidants aid in the body's attempt to combat these dangerous free radicals.

Benefits for the digestive system: Black pepper has long been utilized as a digestive aid in Ayurvedic medicine. It is thought to enhance healthy gut function and encourage the synthesis of digestive enzymes, which can help with digestion. It may also have modest laxative properties that promote regular bowel movements.

Potentially reducing inflammation: Piperine, a substance present in black pepper, has been demonstrated to have anti-inflammatory effects. The body's normal response to injury or illness is inflammation, but persistent inflammation can lead to a number of health problems. Black pepper has anti-inflammatory properties that may help lessen inflammation in the body and may be beneficial for illnesses like arthritis that are worse by inflammation.

Black pepper has been found to increase the bioavailability and absorption of several minerals, including curcumin, the active ingredient in turmeric. When combined with black pepper, piperine in black pepper can aid in enhancing the body's absorption of curcumin, potentially enhancing the health advantages of turmeric.

Black pepper possesses antibacterial characteristics that have been demonstrated against specific types of bacteria and fungi, which may aid in preventing the growth of hazardous pathogens.

The only real distinction between black pepper and black pepper that has been ground up is how it looks.

When referring to black pepper, the term "black pepper" refers to the dried fruit of the pepper plant (Piper nigrum), which is taken when the berries are still green and then left to dry. Often offered whole, these dried berries—also known as peppercorns—can be utilized in a variety of culinary preparations.

Contrarily, ground black pepper is just black pepper that has been pulverized or ground into a fine powder. It is a convenient type of black pepper that is widely used in cooking and flavoring and is easily found in most grocery stores.

Black pepper uses:

Black pepper is a versatile spice that has much use in cooking and outside of it. Black pepper has a variety of purposes, such as:

Black pepper is a common spice used to season meals in the kitchen. It can be added to a variety of recipes, such as soups, sauces, stews, marinades, dressings, and more, to provide food flavor and a bit of heat.Ground black pepper is frequently used as a table condiment to lend a flavorful kick to finished dishes including salads, roasted vegetables, grilled meats, and more.

Whole black peppercorns are frequently used in a grinder or pepper mill to freshly grind pepper, which can produce a more potent and flavorful Whole black peppercorns are frequently used in a grinder or pepper mill to freshly grind pepper, which can produce a flavor that is richer and more aromatic than pre-ground pepper.

Blends of spices: Curry powder, garam masala, and Chinese five-spice powder, among others, all contain black pepper as a common ingredient.

Pickling: To give pickled vegetables or fruits flavor and a sense of heat, whole black peppercorns are occasionally added to pickling brines.

Drinks: Black pepper can be used to provide a distinctive flavor profile in a variety of drinks, including spiced teas, mulled wines, and even some cocktails.

Home remedies: Due to the potential health benefits of black pepper, it has been employed in traditional medicine. It's been applied at home among other purposes, in homemade treatments for stomach problems, coughs, and sore throats. It's crucial to remember, though, that if you plan to use black pepper as medicine, a trained healthcare expert should be consulted first.

Skincare: Due to its potential antioxidant and antibacterial characteristics, which may support healthy skin, black pepper extract or essential oil is occasionally utilized in skincare products.

Black pepper importing from India is best for you!

A company that deals with the import and sale of spices may benefit in a number of ways from importing black pepper from India. Here are a few of the main advantages:

Black pepper of the highest quality: India is one of the world's top producers and exporters of black pepper, which is renowned for its flavor and excellent quality. Indian black pepper is renowned for its strong flavor, which may help a company stand out in the marketplace and develop a devoted clientele.

Cost-efficient: India is renowned for manufacturing premium black pepper at reasonable costs. A company may retain its profit margins and keep its product pricing competitive by importing black pepper from India.

Availability all year round: Since black pepper is grown all year long in India, a company that imports black pepper from India may have a reliable supply of black pepper all year long. Even in the off-season, when black pepper is not readily accessible in other areas of the world, this can assist fulfil the need for black pepper.

Supply chain diversification: By importing black pepper from India, a company can lessen the risk of supply chain disruptions brought on by unforeseen events in other nations where they typically source black pepper, such as natural disasters, political unrest, or other unforeseen occurrences.

Historically, black pepper has been employed for its therapeutic properties and is a staple in Indian cuisine.