While the import of black pepper witnessed a decline of 15.9 per cent in 2018-19, domestic production of the commodity too fell by 12.32 per cent.
The Centre’s initiative to prohibit imports below a minimum price of ₹500 a kg helped bring down imports during the year.
Foods and landslides in the pepper-growing regions of Karnataka and Kerala brought down domestic production in 2018-19.
In reply to questions by Shobha Karandlaje, Member of Parliament from Udupi-Chikkamagaluru, in the Lok Sabha, Commerce Minister, Piyush Goyal said the estimated import of pepper was 24,950 tonnes in 2018-19 against 29,650 tonnes in 2017-18, a decline of 15.9 per cent.
He said the imposition of a minimum import price for black pepper has helped arrest the steep fall of pepper prices and reduce imports.
In a notification dated March 21, 2018, the Directorate General of Foreign Trade (DGFT) had prohibited the import of pepper below ₹500 a kg. To a query whether rising imports and illegal entry of pepper had taken a toll on the average pepper price in India, the Minister replied that they rising imports and higher global production have resulted in a price fall in the domestic market.
The price of black pepper has been declining since 2017-18. The average price of black pepper was ₹694.77 a kg in the domestic market during 2016 -17. This came down to ₹378.21 a kg in 2018-19.
Domestic production
On the domestic production of pepper, the Minister said that it is estimated to be around 62,144 tonnes in 2018-19 compared to 70,878 tonnes in 2017-18.
The decline was attributed to heavy rainfall, floods and landslides in the pepper-growing districts of Kerala and Karnataka in 2018-19.