India: Black Pepper Production Declines – Imports and Exports Increase

19-May-2025 02:25 PM

India: Black Pepper Production Declines – Imports and Exports Increase
★ India’s black pepper production has seen a significant decline. In 2024-25, production dropped from 1.26 lakh tonnes to around 75,000 tonnes, and it is estimated to reach only 76,000 tonnes in 2025-26.

Exports:
★ From April 2024 to February 2025, India exported over 19,000 tonnes of black pepper.
★ This is an 18% increase in volume compared to the previous year.

Consumption & Stock:
★ Annual domestic consumption stands at around 60,000 tonnes.
★ Old stock levels are typically around 50,000 tonnes.

Current Export Prices (per tonne in USD):
India: $8,650
Sri Lanka: $7,200
Vietnam: $7,100
Brazil: $7,000
Indonesia: $7,500

★ Sri Lankan pepper is landing at Indian ports at around ₹650/kg, whereas Indian pepper sells at approximately ₹700/kg.
★ Sri Lanka’s new harvest is expected in June, likely adding more pressure on prices.
★ Under the Indo-Sri Lanka Free Trade Agreement (FTA), the first 2,500 tonnes of imports are duty-free. Beyond this, only 8% duty is applicable. So far, 24,000 tonnes of pepper have been imported from Sri Lanka this season, up from 14,000 tonnes last season.

★ With rising imports, Indian trade associations have urged the government to Reassess free trade agreements with Sri Lanka, South Asia, and ASEAN countries, Implement a Minimum Import Price (MIP) above domestic market rates, Strengthen monitoring systems to prevent unfair trade, Improve global market access for Indian pepper and Promote scientific farming practices, cost reduction, and value addition (such as oleoresin extraction) to enhance quality and competitiveness.

★ While exports are yielding good returns for India, declining domestic production and cheaper imports are exerting pressure on local farmers.
★ Without timely policy intervention, any significant recovery in domestic prices appears unlikely.