INTRODUCTION
Indigenous to India, pepper, rightly called the King of Spices, is one of the oldest and best-known spices in the world. India has always reigned supreme in the production and export of this most exotic and sought-after spice.Indian pepper had a profound influence on the European economy of the middle Ages. Many western countries owed their prosperity to this spice, which fetched them a very high price. Easily the finest in quality anywhere, Indian pepper is grown in the monsoon forests along the Malabar Coast in South India. Here, a combination of natural advantages and organic techniques produces bigger, better shaped, more aromatic and flavorful berries.
Two of the most celebrated trade varieties of Indian black pepper are 'Malabar Garbled' and 'Tellichery Extra Bold'. India also offers green pepper in several processed forms - frozen, dehydrated, freeze-dried and packed in brine. Pepper is a perennial climber requiring the support of live or dead standards.
FUTURE TREND
The global pepper production fall around 20-25 per cent. The rising demand for the king of spices likely to fuel up the market sentiment. We are expecting price to touch level of Rs. 16,500-17,500 per quintal in the month of August-September.
The prices likely to surge on demand gap supply. Global supply of pepper projected around 2.65 lakh tones against 2.9 MT last year.Demand has grown significantly in the recent year, the demand is growing at the rate of 3.46 per annum: IPC.FALLING PRICES
The depreciation of dollar against rupee has adversely affected the export parity, which has led halted the prices to boom despite of strong demand. Also, profit booking from the market players has led sharp fall in prices after sharp rally on futures as well as on the spot market. Overseas imported has adopted wait and watch policy owing to speculative activity in the market.Best buy: As per our study, one can enter in NCDEX August below 13,500 with SL 13,000 targeting for 16,500-17,500. BULLISH REASON: India –· Productions fall to 40,000 MT this year against 45,000-50,000 last year.· Incessant heavy rains last year coupled with diseases are said to have resulted in a sharp fall in the pepper production in the country. · Rains during pollination have affected berry formation in the vines.· Quick-wilt disease has taken its toll, as the affected vines have not been removed to ensure that the disease does not spread to other areas.· Replanting the old vines with improved variety has not been taking place at all. There are vines, which are over 50 years old.· Pepper output has been on a declining trend since 1998-99 except in 2002-03 when the production, according to official estimates, stood at 70,600 tonnes. Thereafter, it has been swinging between 50,000 tonnes and 60,000 tonnes.· Also, dropping yield per hectare, which used to be between 239 kg and 370 kg /ha against Vietnam's 2,500 - 3,000 kg/ha. Vietnam - · Vietnam, world largest producer of pepper, shares around 24 per cent of world production.· Pepper production estimated around 90-95 thousand MT agaisnt normal 1.2 lakh MT. · Crop 07 (85% harvested) has dropped by at least 20% to reach +/= 90,000 Mt (old trees, low yield due to lack of fertilizer , insect damage on roots), and for the following years, it should stand below 100,000 mt.· Low carry over from 2006.· Farmers are also in strong position as they do not produce only pepper but other commodities (coffee price was good this year > 1,400$ /mt) or spices.· Delays and defaults occurring also· Farmers are also in strong position as they do not produce only pepper but other commodities (coffee price was good this year, 1,400$ /mt).· Delays and defaults occurring also.Malaysia
· Pepper production in Malaysia during 2006-07 is expected around 20,000-22,000 MT.· Lower production and increased local consumption, hence Malaysia had not much to offer.Indonesia
· Pepper output pegged around 18-20,000 MT.· Only 10-15,000 is exportable quantity.· Erratic rainfall has significantly hampered the production.Brazil
- Brazil emerged as a second largest pepper producing country.
- 25,000-30,000 MT are likely to dispatch from Brazil.
- Brazilian farmer may hold their pepper for higher prices Farmers are also in strong position, as they do not produce only pepper but other commodities coffee.
Pepper Season
| Country | Jan | Feb | Mar | Apr | May | Jun | Jul | Aug | Sep | Oct | Nov | Dec |
| Vietanam | ||||||||||||
| India | ||||||||||||
| Malaysia | ||||||||||||
| Brazil | ||||||||||||
| Indonesia | ||||||||||||
| Srilanka |
PEPPER & PEPPER PRODUCTS
The products developed from pepper broadly fall into four groups: black pepper, white pepper, green pepper and oil and oleoresin of pepper. Black pepper is the whole dried fruit of the plant, while white pepper is the dried seed after removing the pericarp of the berries. White pepper is neither too hot nor too cold, and is supposed to be the best of all peppers. Black as well as white pepper, are widely used as food ingredients, and as flavouring agents for a variety of processed foods. Because of their curative value, the medical and pharmaceutical industries also use them extensively. Pepper oil, oleoresin and green pepper have specialist applications as food intermediates.- Black Pepper: Black pepper is obtained by drying the ripe green berries. It is widely used by the food industry including processed meat and confectionery products. Black pepper is mostly used in three forms: powder, oil and oleoresin. Most countries import whole pepper berries and convert them into powder. Since the pepper oil and oleoresin and all the flavour characteristics of the original spice are retained quality-conscious food processors prefer whole black pepper. USA is the main market for black pepper.
- White Pepper: White pepper is prepared from the optimally mature peppercorns. The berries are kept under running water for 7 to 9 days to soften their pericarp. After removing the pericarp by scrubbing, the white peppercorns are washed and dried. White pepper is mainly used in the preparation of light-coloured dishes, sauces and soups. West Europe constitutes the major market for white pepper.
- Ground Pepper: Dried pepper berries today are commercially ground using various types of mills, depending on the users’ specifications (e.g. particle size, volatile-oil content, etc). Critical factors like grinding temperature, hygiene and packaging affect the quality of ground pepper. There are a number of spice grinders in producing countries who grind pepper and other spices, using mills from basic machines to sophisticated cryogenic systems.
- Green Pepper: Green pepper is made from the fully developed but immature berries. They are preserved in brine, vinegar or citric acid and may be dried or kept in the preservative. Europeans are fascinated by the natural green colour and fresh flavour of green pepper.
- Canned Green Pepper: The separated green pepper berries are washed and filled in cans containing a diluted solution of sodium chloride with or without added acidity. The filled cans are then sealed and sterilized by the autoclave process, and cooled under running water. Europe, USA and Australia use canned green pepper for flavoring food and garnishing meat dishes.
- Green Pepper in Brine: Green pepper in brine is made from young, green pepper berries, which are carefully detached from the stalks and preserved in a specially formulated solution of vinegar and brine, to retain the natural color and texture of the berries.
- Dehydrated Green Pepper: Dehydrated green pepper has the green color and the flavors of fresh pepper. On dehydration, the berries turn full and soft, but do not have the texture of green pepper in brine. Freeze-drying ensures better dehydration. Freezing the berries in a brass freezer makes frozen green pepper. Europe is the major importer of frozen green pepper.
- Pepper Oil: Pepper essential oil or volatile oil is a natural blend of mainly terpenes and their derivatives that form a clear yellowish green to bluish green color. It is responsible for the characteristic aroma of pepper. Today, this essential oil is still commercially extracted from the pepper berries mainly by the process of steam distillation.
- Pepper Oleoresin: Pepper oleoresin is a concentrated, resinous extract obtained by conventional solvent extraction or supercritical fluid extraction. As the name implies, pepper oleoresin consists of a blend of the essential oil, resinous matter of the spice and related compounds like the pungent alkaloid piperine. Pepper oleoresin has a relatively full flavour profile characteristic of pepper as compared to pepper oil. In Malaysia, there is no commercially run oleoresin extraction.
- Green Pepper Sauce: Green peppercorns are first ground to a puree and then blended with vinegar, salt, sugar or other ingredients. Distinctly piquant with a natural fresh flavour, green pepper sauce is also used as a dip for chips and fries.
- As a Food Condiment: The use of pepper as a seasoning/condiment, on its own or in spice blends, is on the increase with the growing popularity of snacks, ethnic foods, ready-to-cook meals as well as healthy low-sugar-and-salt foods especially in the developed countries. Black pepper tastes strongest when freshly ground although pre-ground pepper is often used in seasonings for convenience. White pepper is less aromatic than black pepper but has special applications, as in white sauces where black pepper would give them an undesirable speckled appearance.
- As a Preservative: The value of pepper as a natural preservative for meat and other perishable foods has been known for centuries. Studies have shown that this is due to the anti-oxidant and anti-microbial properties present in pepper.
- Known Medicinal Uses: Pepper is an important ingredient in Ayurvedic, Chinese and Unami and other traditional medicines. The three main therapeutic uses of pepper are as a stomachic, digestive and tonic.