Pepper
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Pepper ( Piper nigrrum ) a native of the Western Ghats in India is one of the
oldest and the world’s most widely used spices and the most important one grown
in Sri Lanka. Black pepper is the whole dried fruit and pepper the fruit from
which the mescocarp has been removed. Black pepper is used directly as a spice
and also in the preparation of its derivatives, pepper oleoresin and black
pepper oil. White pepper is used almost exclusively as a direct spice.
In Sri Lanka, pepper can be grown up to an elevation of about 1,000m. in most
parts of the Central, North western, Western, Southern, Sabaragamuwa and Uva
provinces. Soils with deep, well-drained loam rich in organic matter are
suitable for pepper cultivation. Well distributed rainfall of 1,600mm – 2,500 mm
annually and a temperature between 24C – 29C are required for successful
cultivation.
Pepper Extent
The aggregate extent under pepper in the country according to the Census of
Agriculture 2002 was estimated at 68,414 acres or 27,708 hectares which is about
33 percent of total area under EAC cultivation in the Island. Out of the total
extent of 27,708 hectares , about 92.1% recorded as holdings that are less than
20 acres or defined as “ Small holdings”
In the instances where it is reported in terms of number of trees, the extent
under crop was estimated on the basis of 1675 creepers per hectare ( 680
creepers per acre). In the Census of Agriculture 2002, the number of creepers
reported as scattered trees nearly 407 million while the corresponding extent
estimated was 3,433 hectares. Out of the total extent of 27,708 hectares , about
92.1% recorded as holdings that are less than 20 acres or defined as “ Small
holdings”
Production
Pepper Production Estimates- 2002-2006
| Year |
Production (mt) |
| 2002 |
13,730 |
| 2003 |
13,740 |
| 2004 |
10,985 |
| 2005 |
14,270 |
| 2006 |
14,330 |
Pepper Exports.
| YEAR |
EXPORT |
| Volume (mt) |
Value (Rs.mn.) |
| 1973 – 1982 ( Mean ) |
928.2 |
23.2 |
| 1983 – 1992 ( Mean ) |
1,759.8 |
150.9 |
| 1993 – 2002 ( Mean ) |
4,431.6 |
884.5 |
| 2003 |
7,740.4 |
1,233.3 |
| 2004 |
4,853.1 |
934.0 |
| 2005 |
8,129.8 |
1,227.2 |
| 2006 |
8,190.2 |
1,774.2 |
Source: Sri Lanka Customs

Pepper Export Trend -1990-2006

According to the above graph, export trend has shown an increasing trend during
the period 1990-2006.
Processing & Product Development
In Sri Lanka, about 95% of pepper is processed primarily into black pepper
and of that estimated 90% is exported. Secondary processing is done only at a
very limited scale. The main value-added products are ground pepper, pepper oil
( average of 3.02 mt. during 2000-2005).and insignificant quantity of white
pepper.
Exports of Pepper and Pepper Products from Sri Lanka
|
Product |
Volume (%) |
Value (%) |
|
|
2004 |
2005 |
2006 |
2004 |
2005 |
2006 |
|
Black Pepper |
96.3 |
96.1 |
95.9 |
94.3 |
93.7 |
94.2 |
|
Ground Pepper |
3.1 |
3.3 |
1.1 |
4.9 |
3.5 |
2.0 |
|
Crushed Pepper |
0.5 |
0.6 |
3.0 |
0.5 |
2.3 |
3.7 |
|
Pepper oil |
0.03 |
0.02 |
0.01 |
.0.3 |
0.5 |
0.1 |
|
|
100.0 |
100.0 |
100.0 |
100.0 |
100.0 |
100.0 |
|
Total |
4853 (mt) |
8041(mt) |
8191(mt) |
936.5 (Rs.mn) |
1234(Rs.mn) |
1776(Rs.mn) |
Source: Sri Lanka Customs * 2006 up to June
In addition to the above, few companies in Sri Lanka produce ready-to-use
seasonings, spice mixtures and sources using pepper as the basic ingredient
mixed with chilies , salt, garlic, etc. Curry powder with a variety of ethnic
tastes is a popular domestic food ingredient. These products are available in
the form of powder, liquid or paste in plastic or glass packaging. Demand for
these products is increasing in domestic market and small quantity is exported
too.
Exports of Black Pepper by Country of Destination
|
Country |
2000 |
2001 |
2002 |
2003 |
2004 |
2005 |
2006 |
|
(Mt.) |
(Mt.) |
(Mt.) |
(Mt.) |
(Mt.) |
(Mt.) |
(Mt.) |
|
India |
2154.3 |
1780.6 |
5582.3 |
6167.6 |
4384.8 |
7582.0 |
6628.1 |
|
U.K. |
87.5 |
31.5 |
81.5 |
2.8 |
1.2 |
24.0 |
27.1 |
|
U.S.A. |
269.9 |
117.0 |
218.8 |
176.6 |
229.7 |
111.1 |
355.0 |
|
Russia |
53.3 |
|
|
|
10.0 |
|
|
|
U.A.E. |
452.4 |
0.1 |
96.8 |
69.2 |
1.1 |
1.3 |
71.5 |
|
Singapore |
40.0 |
|
|
|
|
|
15.0 |
|
Pakistan |
189.0 |
|
45.4 |
|
|
72.2 |
162.2 |
|
France |
56.0 |
6.1 |
10.0 |
65.2 |
0.4 |
15.2 |
15.2 |
|
Saudi Arabia |
117.2 |
|
28.0 |
7.5 |
|
11.0 |
14.0 |
|
Greece |
96.0 |
2.0 |
21.0 |
|
|
1.8 |
14.0 |
|
Italy |
14.8 |
0.2 |
38.8 |
15.4 |
1.5 |
0.9 |
0.9 |
|
Lebanon |
0.4 |
0.5 |
|
|
|
28.0 |
|
|
Jordan |
32.0 |
|
42.1 |
|
0.9 |
0.1 |
0.2 |
|
Turkey |
70.0 |
|
|
80.9 |
|
|
14.0 |
|
Egypt |
417.0 |
|
485.2 |
552.5 |
|
30.0 |
257.4 |
|
Australia |
1.7 |
2.5 |
4.3 |
1.5 |
3.8 |
2.6 |
3.6 |
|
Maldives Island |
16.5 |
8.8 |
5.3 |
7.4 |
6.9 |
10.4 |
9.3 |
|
Canada |
237.0 |
114.2 |
|
2.1 |
6.2 |
2.7 |
3.3 |
|
Netherlands |
66.7 |
1.5 |
3.1 |
93.6 |
16.3 |
39.6 |
135.5 |
|
Denmark |
|
|
6.0 |
|
|
|
|
|
Germany fe.rep. |
66.7 |
31.4 |
58.1 |
184.3 |
72.5 |
25.5 |
80.2 |
|
Other Countries |
416.6 |
64.6 |
1002.1 |
313.5 |
117.8 |
171.4 |
383.7 |
|
Total |
4855.0 |
2161.0 |
7728.8 |
7740.1 |
4853.1 |
8129.8 |
8190.2 |
Source: Sri Lanka Customs
Price Behavior of Pepper
Annual Average Farm Gate, Auction & International Prices of Pepper 1995-2006
|
Year |
Farm Gate |
International |
Auction |
|
|
Price Rs/kg |
Growth Rate Pt. to Pt. |
Price Rs/kg |
Growth Rate Pt. to Pt. |
Price Rs/kg |
Growth Rate Pt. to Pt. |
|
|
|
1995 |
111.00 |
|
139.45 |
|
121.97 |
|
|
|
1996 |
98.86 |
-10.9 |
128.57 |
-7.8 |
110.40 |
-9.5 |
|
|
1997 |
198.24 |
100.5 |
255.97 |
99.1 |
224.89 |
103.7 |
|
|
1998 |
262.09 |
32.2 |
335.18 |
30.9 |
287.31 |
27.8 |
|
|
1999 |
287.98 |
9.9 |
358.86 |
7.1 |
321.18 |
11.8 |
|
|
2000 |
281.82 |
-2.1 |
331.68 |
-7.6 |
307.22 |
-4.3 |
|
|
2001 |
188.50 |
-33.1 |
n.a. |
|
200.50 |
-34.7 |
|
|
2002 |
144.24 |
-23.5 |
168.30 |
|
167.43 |
-16.5 |
|
|
2003 |
122.97 |
-14.7 |
163.52 |
-2.8 |
138.26 |
-17.4 |
|
|
2004 |
138.49 |
12.6 |
160.52 |
-1.8 |
149.86 |
8.4 |
|
|
2005 |
116.89 |
-15.6 |
158.31 |
-1.4 |
129.30 |
-13.7 |
|
|
2006 |
165.38 |
41.5 |
226.11 |
42.8 |
180.34 |
39.5 |
|
|
Source: DEA |
|
|
|
|
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Cost of Production of Pepper
Production costs vary widely depending on the management level. Broadly speaking
the costs of cultivating export crops can be split into two categories:
establishment costs and production costs. Establishment costs tend to be high
especially as export crops take 3-4 years to come into production and a further
two-three years to reach full production capacity
The costs of establishment vary widely depending on many factors – the most
important being the plant density associated with a particular type of cropping
system. Fertilizer is the main material input in maintenance and a major
determinant of yield.
Related Information
|
ITEM |
Unit |
Pepper |
|
Average Productivity * |
Kg/hc |
425 |
|
Average no. of Plants/
hec * |
# |
1,085 |
|
Average Fertilizer Use
* |
Kg/hc |
425 |
|
Labour Cost** |
Rs/hc |
20,956 |
|
Fertilizer Cost |
Rs/hc |
12,750 |
|
Total Variable Cost |
Rs/hc |
33,706 |
|
Gross Returns |
Rs/hc |
59,500 |
|
Returns above Variable
Costs |
Rs/hc |
25,794 |
|
Cost of Production |
Rs/kg |
79.30 |
* Productivity Survey- 2003
** The wage rate at present varies from Rs. 300/= to Rs. 350/= per man-day; and
hence, all labour is valued at Rs. 300/= per man-day
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