Deparment of Export Agriculture
Pepper
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          




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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