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Pepper production and export from India: Growth and instability analysis

Author: 
Anju Jacob and Elsamma Job
Subject Area: 
Life Sciences
Abstract: 

India is the largest producer and exporter of spices in the world and is called as the ‘spice bowl of the world’. During 1960s, with 25 per cent share in world production and 20 per cent share in world export, India was the major producer and exporter of pepper in the world but unfortunately India is losing its comparative advantage in world pepper market. Since the early 2000s, Vietnam has emerged as the leading producer and exporter of pepper in the world market. Kerala accounts for more than 90 percent of the total area and production of pepper in India. The compound growth rate analysis revealed that there was a decrease in the growth rate of area, production and productivity of pepper in Kerala. The export value showed a growth rate of 19.68 percent during 2005-06 to 2013-14 and export quantity showed a negative growth rate of 2.87 during the same period. The incidence of pest and disease was found to be the major reason for the decrease in the production of pepper. The export quantity and value of pepper exemplified high instability whereas the instability in area, production and productivity of pepper were comparatively low. Other pepper producing countries like Vietnam, Srilanka etc. Are posing serious challenge to Indian pepper export in the international market. Appropriate measures should be taken to stabilize the prices in domestic and international markets. The supply of pepper should be regulated in order to prevent fall in price. As majority of pepper growing farmers are small and marginal farmers, incentives should be given to prevent them from shifting to other crops.

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