CHAPTER - IV
OVERVIEW OF INDIAN PEPPER INDUSTRY
This chapter discusses spices, once considered as a luxury has today become an
integral part in daily diet. Indian spices are widely used to flavour food and leverages, for
meat preservation, medical preparations, cosmetics perfumery, bakery goods and various
other products. No Indian meal is considered complete without the tangy and delectable
flavour of Indian Spices, locally known as „Masala‟. Indian Spices, famous the world
over for their gastronomic value, are also known to possess high medicinal values.
Ancient Spices Trade
The ancient Greek history has plenty of remarks about the spices trade with the
East. During the periods the Greek imported eastern spices including pepper, cassia, and
cinnamon. Theophrastus, the Greek philosopher (372-287) pointed out that the most
fragrant spices especially pepper and cardamom came from those hot regions of Asia.
Almost all other spices were in use during the period and spices were specially desirable
articles of commerce.
Pliny, in some early written reports, mentioned even about the price of pepper at
that time. According to him, the price of long pepper was 15 Dinaries, white pepper 7
Dinaries, and black pepper 4 Dinaries per pound. During his time, Rome developed an
active spice trade with Saudi Arabia and India.
Several ancient trade routes were used to transport spices and other luxury goods
from India to the western world, some by land, some by sea and some by the combination
of the two.
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The British founded their East India Company in A. D, 1600. Two years later the
United East India Company of the Dutch was formed. Their entry in this field increased
rivalry in spice trade. Between A.D. 1605 and 1621, the Dutch managed to drive the
Portuguese out of the Spices Island achieving a monopoly in spices trading.
It has been aptly remarked by Rosengarton that the story of spices in the East
Indies in the seventeenth and eighteenth centuries was written in blood. This was due to
the ruthless competition between the Dutch, the British and the Portuguese for domination
over the spices producing countries and trade. However in A.D. 1799 the Dutch East
India Company went bankrupt due to many reasons and the Dutch ports of Malabar Coast
were taken over by British.
By the end of the eighteen the century, the United States, having achieved the stature
as a national power, entered the scene of world spices trade. The most remunerative trade of
the time was that of spices, especially pepper. However piracy was so common that the
United States authorized the arming of the American merchant vessels to fight off such
attacks. Soon the American port of Salem become a major trade centre of spices,
particularly pepper. After 1846, the overproduction of spices brought a general decline in
the trade. This ended in the demise of the Salem pepper trade.
The international spices market was exclusively centered in India until the 16th
Century but the situation had considerably changed during the subsequent centuries.
Substantial spices plantations were established in the Central and South American
countries. Cardamom is produced now in large quantities in Guatemala, which is a
Central American country. Similarly, pepper is being produced in the Latin American
country of Brazil on large scale.
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The inception of an international pepper Exchange under the auspices of Indian
Pepper and Spices Traders Association (IPSTA) is the largest development in the history
of global spices trade. The exchange was inaugurated on 17th November 1997 at Cochin
in Kerala. The Forward Markets Commission of India regulates it and it is functioning
under a steering committee constituted by the Government of India. The Exchange is
only at early stages of functioning and in future it would help the country to regain the
past glory of being the centre of the world spice trade.1
From the above, it is obvious that the present scenario of spices production and trade
is the result of thousands of years‟ events and changes. During the process, spices directly or
indirectly became the cause for changes in the standard of living, culture and even the
economic and diplomatic relations between countries. So, at this juncture, an overview of the
present global spices scenario will be appropriate before going deep into the study.
Global Spices Trade
The world spices trade is mainly concentrated on Black pepper because it is the
largest traded spice in the international market both in terms of quantity and value.
That is why, pepper is called the „king of spices‟ in the international market.
In developed countries, the usage of pepper in food industry has increased
substantially because of its taste flavour and seasoning characteristics. More than 60 per cent
of pepper is consumed in industrial and food service sectors and the balance is used for
domestic consumption, medicines, and perfume, health and beauty segments. Ethnic foods
particularly Indian, Chinese and Thai are having good demand in many developing countries.
1
The Spices Board Rules 1987, Government of India.
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In terms of value and volume, the global spices trade is estimated at US $ 1.5 to
2 billion and 400-450 thousand metric tonnes in quantity. Spices market world over is
growing and significant growth has been noticed in specific spice segments like hot
spices in U.S., aromatic culinary herbs in France etc. Major growth of spices is accounted
for by the industrial and food service sectors.
Pepper rules the spice trade both in terms of volume and value. International
Trade Centre – UNCTAD has estimated that pepper contributes 34 per cent in 2000 of the
total of spice trade by volume followed by chilli at 22 per cent, seed spices 17 per cent, tree
spices 14 per cent, turmeric 5 per cent, ginger 4 per cent, cardamom 3 per cent and
vanilla at 1 per cent2
The capabilities of the Indian spices exporters to contain the quality problem in a
very short span of time have made major international spice trade associations like
American Spice Trade Association (ASTA), European Spice Association (ESA) and All
Nippon Spice Association (ANSA) to invite representatives from Indian spice industry
not only in their annual conventions but also in their decision-making committees where
strategic decisions are taken on quality standards, method of analysis and use of different
techniques and chemicals for preservation of spices and spice products. This is a major
step forward as it elevates the status of the industry and the country and it is the first time
the views of the country are considered by the importing countries for formulating laws
on sensitive issues like food hygiene and public health.
2
Spices Board of India, Spices Export Review, Cochin: 2000. P. 2
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Indian Spices
India is known as the home of spices and produces a wide variety of spices.
The history of Indian spices is seven thousands years old, and as in the ancient Rome and
Alexandria, every home across the globe highly values the quality of Indian spices even
now - in the twenty-first century. Anil & Co an ISO 9001-2000 certified has been in this
field since 1957, enriching the Indian spice industry with the same traditional aroma and
quality. They are now one of the leading names in the industry as the manufacturer and
exporter of a wide range of Whole and Ground Spices like Turmeric Finger, Turmeric
Powder, Garam Masala, Crushed Chilies, Dill Seeds, Black Pepper and much more.
The Indian Spice Industry is adopting newer ways in order to respond swiftly to
the changes in the international arena. Concerted efforts on the quality front have started
paying rich dividends. India is now considered as the best source for quality spices.
Indian spices are famous for their captive flavor and aroma lending the Indian
food its exquisite taste. These spices are used widely in the areas of pharmaceuticals,
neutraceuticals, perfumery, toiletry and cosmetics. The important spices produced in
India are black pepper, cardamom, ginger, turmeric, chili, garlic, coriander, cumin, fennel,
fenugreek, celery, clove, nutmeg, cinnamon, tamarind, kokum, garcinia, curry leaf, saffron,
vanilla and mint. Spice is one of the main horticulture crops, which is used for flavoring
and seasoning the food substances. It is basically defined as vegetable products or
mixtures thereof, free from extraneous matter, used for imparting aroma in foods. Due to
liberalization of Indian economy, the spices industry of India has grown very rapidly. It is
a source of livelihood and employment for large number of people in the country,
especially for rural population.
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It is the largest producer, consumer and exporter of spices and spice products.
Out of the 109 spices listed by the ISO, India produces as many as 75 owing to its varied
agro-climatic regions. Almost all the States and Union Territories (UTs) of the country
grow one or the other spices. In the World Spice Trade, India acquires 48% of the global
export volume and 44% of the export value. It exports more than 0.40 million tons of
spices annually. Over the years, imports of spices are also steadily growing.
All this shows that spice production in India holds a prominent position in the
world spice production. Entrepreneurs from all over the world are exploring the
opportunities in this area. The Government, both at the Centre and the State level, has
undertaken several measures and initiatives for the sound development of the spices
industry. The 'Department of Agriculture and Cooperation' and 'Spices Board of India' are
the main organizations for promoting research in the sector and scale up activities of
exports. Once in every 2 or 3 years, the 'World Spice Congress' is being jointly organized
by the All India Spices Exporters Forum and Spices Board. It is a periodic congregation
of spices exporters and importers from various countries. It is a venue to discuss various
aspects, understand each other's requirements/capabilities and has proved to be an
important International event in the Spice Trade. Recently being, the 9th World Spice
Congress was held in January 2008 at Goa.
History of pepper
Pepper is one of the oldest and important spices in the world. Being a valuable
commodity, it was often used as payment even to pay taxes. In 410 A.D, when the Huns
Lay Seige of Rome, demanded 3000 pounds of pepper as ransom. The word pepper is
derived from the Sanskrit name pippali or pippalii. Greek péperi and in Latin piper.
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This spice was prevalent in the biblical times as well. Later, Arab traders established a
pepper monopoly and transferred the spice via the spice route through the Arab. Pepper
was much used by the Romans and in the Early Middle Ages it became a status symbol of
fine cookery. This aromatic spice with an exotic flavor and a pungent odor is cultivated in the
wilds of Burma apart from South India since the millennia. Two thousand years ago
pepper reached Southeast Asia and has been grown in the lands of Malaysia and
Indonesia since then. In the last few decades of the 20th century, pepper production
increased, as new plantations were founded in Thailand, Vietnam, China and Sri Lanka.
Medicinal Properties
Pepper from Piper Nigrum is one of the oldest and world's most important spices.
Pepper is used in certain tonic and rubefacient preparations and also used as flavour
ingredient in most major food products including non-alcoholic beverages, candies,
baked foods, meat and meat products, Cheese, condiments and relishes. Pepper picture
gallery and Pepper in different languages and continent names are depicted appendix- C.
Global Scenario
Pepper is being cultivated in developing countries across Asia and South America.
Its consumption is concentrated in industrialized countries besides India. Vietnam is the
largest producer of pepper, which contributes about 34% of world pepper production
followed by India (19%), Brazil (13%), Indonesia (9%), Malaysia (8%), China (7%),
Sri Lanka (6%) and Thailand (4%). Vietnam is also the largest pepper exporter whereas
the USA is the biggest importer in the world.
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Major pepper producing countries
Pepper is cultivated in about 26 countries with the majority from Asian Countries
i.e Vietnam, India, Brazil, Indonesia, Malaysia, China, Sri Lanka and Thailand. Before
1999, India was the leading pepper producing country and Indonesia was on the second
place. But from 1999 onwards, India lost its place to Vietnam
Period of Pepper harvesting and new crop arrivals at various origins
The harvest calendar of pepper in general and for Black pepper and White pepper
are shown in Chart 1 and 2 below
Chart 1 Period of Pepper harvesting and new crop arrivals at various origins
Country
Jan
Feb
Mar
Apr
May
Jun
Jul
Aug
Sep
India
Vietnam
Sri
Lanka
Malaysia
Indonesia
Brazil
Harvest
Harvest & arrivals
Arrivals
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Oct
Nov
Dec
Chart 2 Harvest Calendar of Black Pepper
Country
Jan
Feb
Mar
Apr
May
Jun
Jul
Aug
Sep
Oct
Nov
Dec
Brazil
India
Indonesia
Madagascar
Malaysia
Sri Lanka
Vietnam
Chart 3 Harvest Calendar of White Pepper
Country
Jan
Feb
Mar
Apr
May
Jun
Jul
Aug
Sep
Oct
Nov
Dec
Brazil
India
Indonesia
Malaysia
Vietnam
Major trading centers of pepper
The major trading centers of pepper in the world are shown below.
New York, Singapore, Rotterdam, Lampung - Indonesia (primary international grades),
Sarawak – Malaysia (primary international grades), Vietnam (primary international
grades), Kochi - India (malabar grade)
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International Grade of Pepper
International grades of Pepper are mainly based on the name of the producing
centers.
Malabar Garbled (MG1) India
Lampung Panjang, Indonesia
Sarawak kuching, Malaysia
Vietnam HCM city, Vietnam
Vietnam
Vietnam started pepper production on commercial basis in 1990‟s taking lead
from India in just 10 years and is the world leader in global pepper market with the
highest global production of 341 thousand tonnes in 2002. It is producing close to
100 thousand tonnes, Its yields are five times higher than India (Vietnam 1800 kgs / Hectares.
Vs India 320 kgs / Hect). Hence, Vietnam (30%), is the key contributor in world pepper
production with a share of 30 per cent approximately.
Brazil
Brazil entered the field of commercial pepper in 1933 and now it is the one of the
important countries raising a severe threat to pepper producing countries. Brazil is the
third largest producer of pepper with two yearly crops. It produces about 36 thousand
tons every year, first crop is mainly in Para state, usually shipped from the port of Belem
from August to January/February and the second production from May till June / July in
the states of Espirito Santo and Bahia which is shipped from the ports of Vitoria and
some from Salvador.
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Indonesia
Indonesia is the second most ancient pepper growing country. During the Japanese
occupation of Indonesia, most of the plantation was abandoned and pepper production
declined sharply. It lost its pepper plantation to other profitable plantations such as oil palm
and rubber. Now pepper production is registered to certain areas and the Indonesian
Government is trying to recapture the past glory through development activities.
Malaysia
The European settlers introduced black pepper in Malaysia during the early
seventeenth century. In Malaysia, pepper cultivation is concentrated in Sarawak. The pepper
cultivation is being done by Chinese farmers and they have evolved an intensive
production technology.
Sri Lanka
Pepper is grown as a mixed crop in Sri Lanka in Cocoa plantations and in house
compounds. Major cultivation is in the dry zones of elevation of less than 600 meters
from MSL. The cultivation practices are similar to that of India. Even though India is one
of the large producing countries, Sri Lanka is exporting its pepper to India.
World pepper Production and Export
Production of pepper depends very much on agro-climatic factors, Pests, diseases
etc. High price coupled with good cultivation practices, favourable weather situation and
fewer incidences of pests and diseases often lead to higher production level. Reversing
the situation of the above factors would normally lead to lower production. During the
last ten years world pepper production and exports shifted within the range of 1, 71,000 tonnes
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to 2,33,000 tonnes for production and 1,27,000 tonnes to 1,67,000 tonnes for export.
The IPC member countries are major producers and Exporters of pepper. They produce, on
an average 166000 tonnes of pepper or 84 per cent export 124000 tonnes or 87 per cent of
world pepper exports.3
The non-IPC member countries like Vietnam, China and Madagascar produce on
an average about 60,000 tonnes or 16 per cent of world production and supply about
13 per cent of world export. However, the pepper production in Vietnam is showing a
phenomenal growth and if the present growth continues, it would be the major pepper
producing country in the immediate future.4
Table 4.1 shows the world pepper production and export with their markets on the total.
3
Website IPC, www.ipc.net.org.
4
Website IPC, www.ipc.net.org.
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Table: 4.1 World Pepper Production and Export (2001 and 2010)
(Quantity in tonnes)
Production
Country
Export
(2001)
Rank
(2010)
Rank
(2001)
Rank
(2010)
Rank
India
79000
1
50000
2
22593
5
39897
3
Brazil
40000
4
35000
3
36785
3
17863
4
Malaysia
27000
5
23500
6
25032
4
8568
5
Vietnam
62000
2
90000
1
56509
1
68569
1
Indonesia
59000
3
25000
4
53594
2
14587
2
Srilanka
5700
8
15592
7
2096
6
9865
7
Thailand
8819
7
8633
8
800
7
985
8
China
15000
6
28961
5
606
8
8011
6
Others
23784
61694
3270
96909
320303
338380
201285
265254
Total
Source: www.ipc.net.org.
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Pepper (both black and white) is a principal spice being traded in the international
spices market. Majority is traded in whole/ ungrounded state, though in recent years,
there has been a significant increase in the trade for value added pepper products from
producing countries.
The value added pepper products, esteem traded internationally are pepper
powder, green pepper, pepper oil and pepper oleoresin.
Chart 4.4 and Chart 4.5, show that Vietnam is far ahead of India in the export of
pepper though India has top rank in production in 2000-01. In other words, Vietnam,
Indonesia, Brazil and Malaysia are exporting more pepper than India. It implies that a
considerable portion of Indian pepper is used for domestic consumption. The Chart 4.4,
clearly reveals that India lost its place to Vietnam in the production of pepper. On the
other hand, India has minimal improvement of pepper exports as compared to Indonesia
and Brazil but Vietnam is far ahead of India by its exports. These results are clearly
depicted in chart 4.4 to 4.7.
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Chart: 4.4 World wise Pepper Production in 2001
80000
Quantity (in tonnes)
70000
60000
50000
40000
30000
20000
10000
0
India
Brazil
Malay Vietna Indon Srilan
sia
m
esia
ka
Production (2000) 79000 40000 27000 62000 59000 5700
Thaila China Other
nd
s
8819 15000 23784
Chart: 4.5 World wise Pepper Production in 2010
90000
80000
Quantity (in tonnes)
70000
60000
50000
40000
30000
20000
10000
0
India
Brazil Malay Vietn Indon Srilan Thaila China Other
sia
am
esia
ka
nd
s
Production (2010) 50000 35000 23500 90000 25000 15592 8633 28961 61694
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Chart: 4.6 World wise Pepper Export in 2001
60000
Quantity (in tonnes)
50000
40000
30000
20000
10000
0
India
Brazil
Malay Vietna Indon Srilank Thaila
sia
m
esia
a
nd
Export (2001) 22593 36785 25032 56509 53594 2096
800
China Others
606
3270
China
Other
s
96909
Chart: 4.7 World wise Pepper Export in 2010
100000
90000
Quqntity (in tonnes)
80000
70000
60000
50000
40000
30000
20000
10000
0
India
Brazil
Malay Vietna Indon
sia
m
esia
Export (2010) 39897 17863 8568 68569 14587
Srilan
ka
9865
Thaila
nd
985
8011
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Demand for Pepper
The demand and consumption of pepper is growing on an average of 3 per cent
annually. USA is the largest importer of pepper followed by UK, Germany, UAE,
Singapore, Malaysia, Saudi Arabia, Japan, Nepal and other European countries. It has
been estimated that the consumption of the importing countries is at the level of 158000
tonnes annually.
Import and Re-export of Pepper
There is only less than ten countries producing pepper on commercial basis.
However, a close observation of the export statistics of various countries reveals that
there are more than fifty countries exporting spices without producing the same and some
of them are contributing significantly. It indirectly implies that there are countries
commercially exploiting the spices producing countries with or without their awareness.
Singapore is one of the important countries acting as an entrepot of spices,
particularly pepper. During the past, major share of pepper produced in Indonesia and
Malaysia were exported to Singapore and re-exported to other countries.
Netherlands is reported as another major entrepot of pepper which re-exports to
European Countries. European Countries are more quality-conscious and Netherlands
capitalised the opportunity by supplying spices as per the European standards.
Other major re-exporting countries are USA, Germany, and UK. These countries
import spices from producing as well as re-exporting countries like Singapore and
Netherlands. Thus, it is evident that the spices are traded at different centres and countries
before they reach the final consumer. Noticeably, such re-exports are done after value
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additions and sometimes without any value addition at all. Either of these situations
offers vast scope for spices producing countries.
International Pepper Exchange
Unexpected fluctuations on production and the prices of the spices cause
considerable losses and disappointment to the producers, traders and exporters of spices.
The inception of the international pepper Exchange was the result of the efforts to
rejuvenate the depressed stage of global pepper trade.
The producers of spices, majority of them do not know the international significance
of their produces; sell to the local traders who in turn hand over the same to the traders at
major towns. The products then move to the hands of wholesalers or to the exporters who
make shipment as per foreign or domestic orders. As the number of intermediaries
involved in the channel is more, the actual international price and the price earned by the
producers will be entirely different; further, all types of speculations are possible leading
to unjustifiable price fluctuations. The credibility of export also is often doubtful due to
regular default of contracts by foreign importers as well as domestic traders. These are
the reasons, which led to the emergence of an international pepper exchange.
IPSTA ICE
The International Pepper and Spices Trading Association International Commodity
Exchange (IPSTA ICE) is functioning at Mattancherry, the Jews town of Kochi. It is the
latest contribution of our little Kerala to the world of spices trading
The international pepper exchange, which started functioning on 17th November
1998, was the result over 40 years of highly reputed domestic trading. The integration of
the global trade in pepper through the inception of the international pepper exchange will
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definitely help the concentration of world spices trade again in Kerala, which may be
aptly remarked as a historical regression.
Genesis of international pepper Exchange
The IPSTA ICE was the outcome of a feasibility study by UNCTAD (United
Nations Conference on Trade and Development) undertaken with the purpose of promoting
international pepper trading. The basic aim of UNCTAD while undertaking the study was
to set up a market-based institution and a market-driven price determination for black
pepper, which is the most favoured spice of the world. The UNCTAD report was accepted by
the International pepper community (IPC) at its 22nd session in Changmai (Thailand)
The idea of pepper future contracts was designed by a working group set up by
IPC. Comprising the representatives of the producing countries with the purpose of
extending price discovery and risk transfer functions for the benefit of all the participants
of the global trade in black pepper. The government of India and the international pepper
and spices traders association were given the authority to suggest an appropriate market
place for the international pepper exchange and Cochin, the most deserving city, was
selected for the functioning of the exchange.
Functioning and importance of the exchange
The method of functioning and the significance of the IPSTA ICE can be better
explained like this- on 01-01-2003, X Ltd, a pepper exporting company in India obtains
an order from USA for 500 tonnes of black pepper @ $ 2500 per tonne, to be delivered in
May 2003. X Ltd estimates that they should get pepper @$ 2000 per tonne to earn a
reasonable profit from the deal.
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Membership of IPSTA ICE
In order to become a member of ICE, one should obtain registration from the
forward Market Commission and the Reserve Bank of India. The registration may be
done through an application submitted to the International Pepper and Spices Traders
Association of India IPSTA. However, to obtain registration for composite clearing
membership or trading membership, the approval of the Foreign Investment Promotion
Board (FIPB) must be obtained. Members only are allowed to transact through the exchange
and there are six types of members in the International pepper exchange as follows.
1)
Composite Clearing Members (C.C.M) having full trading and clearing rights.
They can enjoy full trading rights on the trading floor, execute their own
contracts, contracts of other members and clear their own accounts.
2)
Composite Trading Members (C.T.M) having full trading right on the floor but
having no clearing rights.
3)
Trading-cum-Clearing Members (T.C.M) having the rights to trade and clear
only for their account but they cannot execute contracts, customer contracts or
contracts executed by others.
4)
Trading Members (T.M) who can trade for their own account but have no
clearing rights.
5)
Institutional Clearing Members (I.C.M) the membership is open only to
Commercial banks and financial institutions. They have full clearing rights but
have no trading rights.
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6)
Registered Non-Members (R.N.M)- having customers and they can have trade
executed by Composite Clearing Members.
Trade and conditions for transactions
The ICE contains and insists mandatory restrictions on all transactions to ensure
the credibility and standard of the dealing to the international specifications. The following
procedure is the important among them.
1)
Quality- Regarding quality, it has been restricted that the pepper traded should be
of MVLSB specifications. This quality specification permits moisture contents
up to 12 per cent of the total weight, light barriers up to 2 per cent, mould visible
to the naked eye up to 1 per cent, extraneous matters up to 1 per cent mammalian
excreta up to 1 m.g per Ib and insects up to 2per Ib.
2)
Contract size- The minimum contract size is determined as 2.5 tonnes.
3)
Contract Months – All calendar months are allowed for contracts with the restriction
of a maximum of six contracts at a time and with duration of six months each.
4)
Delivery units – The delivery of the commodity must be in units of 15 tonnes or
the multiples thereof which is intended for the convenience of shipment.
5)
Quotation - The quotations must be in Indian rupee alone and the price should be
per quintal. Further, the minimum price fluctuation is decided as Rs 5 per quintal
i.e. maximum of Rs 125 per contract.
6)
Trading time – The trading time is 9.30 a.m. to 1.30 p.m. from Monday to Friday
and from 9.30 a.m to 12.30 p.m. on Saturdays.
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7)
Position Limit – Every trader can have a maximum position limit of 200 M.Ts
across all contracts months. This means that at any time there should not be
pending contracts of 200 M.T. or above for a member.
8)
Daily Price Limit – the daily price fluctuation has been decided as 6000 per M.T
from the previous settlement price. Trading will be stopped whenever the price
fluctuates above or below this permitting range.
9)
Margin money – in order to ensure the safety of the transactions the IPSTA ICE
restricts that every trader should deposit a margin of Rs 15,000 per contracts.
10) Transaction fee – The IPSTA ICE collects a transaction fee of Rs 5 per contract
and the FCCCI (the clearing agency – First Commodities Corporation of India)
collects a clearing fee of .03 per cent of the contract value as their remuneration.
Trading Procedure
The trading floor of the pepper exchange is in the buildings of IPSTA at Mattancherry,
Ernakulum. Each member has a cabin on the trading floor where they receive buying and
selling orders from the different parts of the world. Through bid system they enter into
contracts after arriving at consensus. The timely delivery of the commodity and timely
payment of the consideration are ensured by IPSTA ICE with the help of the clearing
agency FCCCI.
First Commodities Clearing Corporation of India (FCCCI)
The financial performance of the future contract is guaranteed by FCCCI Ltd.,
which is owned, capitalized and managed by the clearing members of the ICE. 45 per cent of
the equity capital of FCCCI is reserved exclusively for institutional clearing members.
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Banks and financial institutions alone are eligible to become institutional clearing
members. All the clearing members are members of IPSTA also.
All the members of the international pepper exchange must have a clearing
agreement with a clearing member. FCCCI collects margin money also to ensure timely
fulfilment of the contracts by the trading members. 25 per cent of the clearing fee paid by
the clearing members to FCCCI is accumulated into a guarantee fund with the purpose of
assuring maximum safety for the transactions.
It is worthwhile to note that, within a short span of time, the exchange could
achieve remarkable role in the international pepper transactions but the exchange has
much to progress to achieve the aims fully.
Indian Scenario
In India pepper is a known spice since ages. Even before the time of Alexander's
conquest of India, Indians knew the flavour of pepper. India used to be the largest
producer in the nineties and it is the leading country in terms of area of cultivation and
volume of production of pepper until 2002, but at present, it has lost its place to Vietnam.
India is the world's second producer of pepper in 2009-10. It contributes about 20 per cent in
the total world production followed by Brazil 14 per cent.
India holds a supreme position in the production of pepper. The most popular
varieties from India are Malabar Garbled and Tellichery Black pepper. The finest Indian
pepper is grown in the monsoon forests of the Malabar coast in Kerala. The Southern
states are contributing in the production of pepper Kerala (88%), Karnataka (7%),
Tamilnadu (1%), and Other States (4%). India (10%) is the key exporting country. These
results are clearly depicted in chart 4.8 and 4.9.
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Chart: 4.8 India’s Pepper Production in 2000-01
Chart: 4.9 India’s Pepper Production in 2009-10
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Pepper Production System
Pepper is grown in India in
i)
The coastal area, where pepper is grown on almost every homestead or
plot of land;
ii)
Slopes and valleys, where pepper is extensively cultivated on a plantation
scale;
iii)
Hills at an elevation of 800-1500m, where the pepper vines are allowed to
climb the shade trees in coffee and tea plantations;
iv)
Valleys, as a mixed crop in arecanut gardens in the northern part of
Cannanore and Kasaragod districts of Kerala and North Kanara and South
Kanara Districts of Karnataka.
In India, pepper is mainly cultivated in the three southern states of Kerala,
Karnataka and Tamilnadu. It is an important source of income and employment for rural
households in the predominantly pepper growing state of Kerala. It is estimated that
about 2,50,000 farm families are involved in pepper cultivation in the state. The pepper
producing states of India are depicted in the map shown below.
Pepper producing States in India (Kerala, Karnataka and Tamil Nadu)
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Pepper producing States are marked
Chart: 4.10
Geographical Spread of Pepper Production in India
Source: www.spicesboard.in
India harvests most of its Pepper at the beginning of the year. During 2009-10, the
production of Pepper in India was reported to be 50,000 tonnes against 29000 tonnes
lower than the production in 2000-01.
Kerala accounts for 88% of India‟s pepper production. The other producers are
Karnataka and Tamil Nadu.
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The Indian Pepper crop in 2008 is estimated to be 48,000-50,000 tonnes.
Harvesting was delayed because of heavy rains in October.
India is the world‟s top consumer of Pepper. IPC estimates consumption in the
country at 55,000 tonnes in 2007- up from 50,000 in 2006. However, the international
body‟s projection for domestic consumption in 2008 shows a dip of 10,000 tonnes.
India is expected to export around 30,000 tonnes in 2007 and 23,000 tonnes in the
following year, with the decline being mainly because of high prices that will keep
buyers away.
During 2007, Indian exports of pepper amounted to 30,000 tonnes, which was
23000 tonnes in 2006. The export in 2006 was the lowest quantity of pepper exported
from India during the next year 2007.
Overview
As mentioned above, pepper is said to be the „king of spices‟ because its usage
round the world is more than any of the spices present. It is also the oldest one.
The production of pepper is dependent upon the hot and moist weather conditions and the
pepper crop needs these sorts of conditions to prosper. That is why it is produced in
countries having this type of climate.
The topmost pepper producing countries form part of the International Pepper
Community Countries (IPC) covering about 85% of the pepper world‟s trade. The world‟s
total production was recorded at 3.25 lakh tonnes in 2003. The pepper export fluctuates
around 2.25 lakh tonnes and the major export share is held by Vietnam with 85 thousand tons.
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Earlier, India was leading the list of the pepper producing countries but after
1999, Vietnam took the lead as it put more area under pepper production. The world‟s
total pepper demand was about 2.2 lakh tonnes in 2001-02.
Pepper was the one of the first crops that was cultivated in India. It is usually
found in the southern and south-western regions of Indian subcontinent. India‟s pepper
production constitutes 20% to the world‟s pepper production. Kerala holds the biggest
share in India‟s total pepper production contributing to a staggering 88%. The remaining
production is contributed by Karnataka, Tamil Nadu, Pondichery and Andaman & Nicobar.
Cultivation pattern
As already discussed the pepper plant needs a hot and humid weather and also it
needs a good rainfall and partial shades to prosper. The pepper plant has lifetime of
around 40 years and starts producing the berries after 2-5 years. The pepper crop is grown
as a mixed crop in India. The productivity of pepper in India is low as compared to the
other pepper producing countries. This is one of the reasons for India‟s losing grip of the
pepper production to other countries.
The sowing period of pepper plants in India is generally May-June. The crop
sown in May-June is harvested from December to February. The harvesting period may
alter depending upon the geographical location i.e. in hilly areas. It may start from
January and can extend up to March and in plains the harvesting period may start from
November up to January.
Harvesting periods of pepper crop outside India is also different from the
harvesting period in India. June-July is the harvesting period in Sarawak (Malaysia),
August- September in Brazil, July-September in Lampung (Indonesia).
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Production of pepper in India
India had been producing pepper for a very long time. India contributes to about
20% of the world‟s pepper production and the area under pepper production is about
2.25 lakh hectares.
Pepper is found in southern and south-western regions of India. Kerala is the
leading pepper-producing state in India contributing to around 88% of the total production
followed by Karnataka. The major districts of Kerala, which are indulged in pepper
production, are Calicut, Cannanore, Kottayam and Idukki. The major districts, which are
indulged in pepper production in Karnataka, are Kodagu, North Kanara, South Kanara
and Shimoga. Following are the states other than Kerala, Tamilnadu and Karnataka in
which pepper is being produced

Maharashtra, Goa, Madhya Pradesh, Andhra Pradesh, West Bengal, Orissa,
Assam, Tripura, Meghalaya, Arunachal Pradesh, Mizoram, Nagaland, Manipur,
Pondicherry, Andaman and Nicobar Islands
Pepper Trading Centers in India
In India, pepper is traded at

Cochin, Alleppey, Calicut, Nedumangad, Konni, Adoor, Pala, Alwaye, Thodupuzha,
Chalakudy, Badagara, Cannanore, Tellicherry, Kanjangad, Kasaradod, Mumbai.
Also, pepper is traded in Indian commodity exchanges namely, National Commodity &
Derivatives Exchange Ltd, Multi Commodity Exchange of India ltd, National Multi
Commodity Exchange of India Ltd and India Pepper & Spice Trade Association.
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Indian Spices Trade
Tropical climate is considered as ideal for spices cultivation and the best quality
spices are available in the latitude belt between 250 North and 100 South of Equator.
Spices do not grow in extremely hot and cold regions. This peculiarity gives a special
privilege for the spices producing countries like India in the spices production and trade
because those countries which cannot produce spices have to fully depend on spices
producing countries to meet their inevitable medicinal and culinary needs.
As mentioned elsewhere, it was this factor, which turned the history of the world
itself. In the future also, this advantage would help the spices growing countries like
India to have a sizeable share of the world trade in a globalised economy.
The contribution of various states/ on India’s pepper production are shown below.
Area and Production
Kerala state contributes a major share of pepper produced in India. Depending on the
climate, production in Kerala varies from 45,000 tonnes to 65,000 tonnes. Small (<0.2
hectare) and medium (0.2 to 0.81 hectare) farm holdings constitute more than 80% of the
total number of pepper farms.
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Area and Production in Kerala (Pepper in coffee garden in Kerala)
Karnataka State is the second largest producer of pepper in India with an average
production of around 12,000 tonnes. A major portion of pepper produced in Karnataka is
from the coffee holdings. Shade trees in the coffee gardens are used as supports for
pepper vines. This type of cultivation is prominent in the districts of Kodagu,
Chickamagalur and Hassan. In other areas such as North and South Kanara districts, it is
cultivated both as a pure and a mixed crop along with arecanut.
Area and Production in Karnataka
(Pepper on live supports in Karnataka's tea plantation)
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Tamilnadu and some of the North Eastern states have also started pepper cultivation in
recent years, though on a limited scale. In Tamilnadu, pepper vines are allowed to climb
on coconut and oil palms.
Area and Production in Tamilnadu
(Pepper vines on coconut trees)
Organic pepper
India is one of a few countries that produce pepper organically. On an average,
100 tonnes of organic pepper are exported from India annually. The major markets for
organic pepper are Germany and the USA.
Imports
India imported small quantities of pepper, between 4000 to 5000 tonnes, for value
addition and re-export, during the nineties. During the last few years, however, pepper
imports have increased significantly. The major chunk of these imports came from Sri
Lanka, Vietnam and Indonesia.
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Indian pepper market
India has been the oldest pepper producing countries and one of the biggest
markets of the premium grade of pepper. Pepper in India mostly gets harvested at the
beginning of the year only. Kerala is the leading pepper producing state in India.
But in the current scenario the production of pepper in India has reduced drastically.
As compared to the production of 80000 tonnes of pepper in 2002, the production fell to
50000 tonnes in 2010.
Commodity Profile – Pepper
Pepper, the king of spices, botanically known as Piper nigrum, is one of the oldest
and the most popular spices in the world. In early historic times, black pepper was widely
cultivated in the tropics of Southeast Asia. It is a perennial, climbing vine indigenous to
the Malabar Coast of India. Apart from India, black pepper is widely cultivated throughout
Indonesia, Malaysia, Brazil, Sri Lanka, Vietnam and China. The berry-like fruits, or
peppercorns, are round, about 0.5-1.0 cm in diameter and contain a single seed. They
become yellowish red at maturity and bear a single seed. The odour is penetrating and
aromatic; the taste is hot, biting and very pungent. There are two types of pepper - black
pepper and white pepper.
Economic importance

Both black pepper and white pepper are used in cuisine worldwide, at all stages of
the cooking process and as a table condiment.

Pepper contains about 0.6 - 2.6% essential oil. Oil of pepper is used in the
flavoring of sausages, canned meats, table sauces, soups and certain beverages.
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
It has a number of medicinal virtues. It is commonly used as antacid and digestive
spice.
Domestic Scenario
India is the second largest pepper producer in the world. Kerala is the largest
producer of pepper, accounting over 50 per cent of India‟s total output followed by
Karnataka and Tamil Nadu.
Pepper is a perennial crop grown in a hilly region of India. Normally, pepper
harvesting starts from December to January in the plains and January to March in the
hills. February-March is peak arrival season for pepper. Kochi (Kerala) is the major
trading center for pepper in India. Thodupuzha, Madikeri, Idukki, Wayanad, Chickmagalur
and Sakaleshpur are the other major trading centers in the country.
Description:
Black pepper is defined as a small and unripe fruit of Piper Nigrum, a weak
climbing plant, which is dried to be used in the form of spice and seasoning. One of the
earliest and the most widely used spices, it smells extremely pungent. To get black
pepper, the berries from the plant are picked when they are still not fully ripe, fermented
and then dried in the sun till the time they dehydrate and turn brownish-black in color.
Once dried, the spice is called black peppercorn, is approximately 5 millimeters (0.20 in)
in diameter, dark red when fully mature, and contains a single seed like all drupes.
Known as the 'king of spices', Black peppers are native to India and are extensively
cultivated here and in tropical regions and also it is the world‟s most traded spice.
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Crop Cycle
In plain region the harvesting season ranges from November to January and in the
Hilly area it extends from January to March. The crop takes about 6-8 months for harvesting.
In the state of Kerala which has a production share of around 96%, the plantation period
is between May-June.
The pepper plant has a lifetime of around 40 years and starts producing the berries
after 2-5 years.
Types of Crop
Some of the well known varieties of black pepper are

Tellicherry: It is a high quality gourmet pepper with large and tasty berries.

Malabar: Its aroma is sweet and fruity and is largely used in desserts and savories

Lampong: It is known to be one of the best black peppers in the world.

Sarawak: It is extremely fresh, with sharp, pungent taste to it

Other Varieties: Allepey, Saigon, Penang, Singapore, etc
Production
India introduced pepper to the world and it cultivates pepper for centuries. Until
1980s India was the largest producer of pepper but now India stands at 4th position acquiring
20% share with 50 thousand tonnes of production with a yield of approx 200 Kg/Ha.
Production of pepper is increased mainly because of area under pepper cultivation is
increased but in terms of productivity it is now less than the production level of 1948-49.
India has over 2,00,000 hectare under pepper, but produces much less in comparison with
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other countries; India‟s pepper yield is now the lowest in the world. Whereas, Vietnam‟s
pepper yield levels are 5 to 6 times higher than India. Vietnam overtook India in just
10 years and now it is the world major producer.
Consumption:
Black pepper known as “King of Spices” is scented, a stimulator, helps in
digestion, an appetizer, is relishing, causes sweat and destroys worms. It causes excessive
urine and is also beneficial to people suffering from gonorrhoea. Sage Dhanwantari
considered it to be the destroyer of all kinds of bacterias and viruses. Domestic consumption
includes pepper for grinding, extraction of oil and oleoresins, the requirements of other
industries and pepper for use by households and food establishments.
Indian Pepper
History of Indian pepper
Pepper has a long history that is 4000 years old and it moves back to even before
410A.D. It had been continuously used as a medicine for various ailments such as fever,
digestive problems and stomach aches. Pepper has a quality that it helps in cooling down
the body as it activates perspiration. The monks also used it because it was said to boost
their endurance during their long treks. It was also used by the Chinese to cure cholera
and malaria.
Pepper has always been a valuable commodity and has been used as a mode of
payment. It was used to pay rent in England. Taxes could also be paid through pepper in
the ancient times. Pepper was much used by the Romans too. It was considered that fine
cookery was incomplete without the use of pepper. Until 18th century, the Portuguese
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dominated the pepper trade as they discovered the sea route to India and they used this
route for taking pepper to their country. In India, pepper was known even before
Alexander marched in the country.
The last part of the 20th century has shown a high increase in pepper production as
new plantations were found out in major pepper producing countries of the world.
Both black and white pepper have been used in the East for the treatment of
stomach aches, digestive problems and fever for over 4,000 years. The Chinese used
pepper to treat malaria, cholera and dysentery. Pepper induces perspiration which eventually
cools the body, thus acting as a 'febrifuge'. The monks of India were advised to swallow
7 to 9 grains of pepper a day to give them an endurance boost on their long treks.
Two thousand years ago pepper reached Southeast Asia and has been grown in
the lands of Malaysia and Indonesia since then. In the last few decades of the 20th
century, pepper production increased as new plantations were founded in Thailand,
Vietnam, China and Sri Lanka.
Various forms of pepper
India produces a wide variety of value-added forms of pepper. The items
produced and exported from India include
 black pepper products (Freeze-Dried Black Pepper, Dehydrated Black Pepper,
Sterilized Black Pepper, Ground and Cracked Black Pepper)
 Green pepper products (Dehydrated Green Pepper, Green Pepper in Brine,
Green Pepper in Brine (soft corn), Green Pepper Stalks in Brine, Freeze-Dried Green
Pepper (non-treated quality), Freeze-Dried Green Pepper (treated quality), Freeze-Dried
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Green Pepper (cracked), Dehydrated Green Pepper (cracked), White Pepper, Pepper oil,
Pepper oleoresins and Pink Pepper in Brine.
Pepper Products
Green pepper
Green Pepper corns are the immature, fresh
(green) berries of the pepper vine - Piper
nigrum. These berries are plucked fresh
from the vines and processed into various
specialty products while retaining their
natural green colour and flavor. Following
are the gourmet range of Green Pepper Products processed in India.
Freeze Dried Green Pepper
India is one of the very few countries
which produce and supply Freeze
Dried Green Peppercorns, wherein
even the natural form of the Green
Peppercorns is retained. This is a
specialty product which finds a wide
application in instant soups and dry-meals on account of its special characteristics and
subtle flavour. It is also used in the cheese industry and for preparation of pates. By virtue
of its reconstitution characteristics it is a favourite choice for housewives who obtain it
from the retail in glass jars for varied application at home.
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Dehydrated Green Pepper
Dehydrated Green Peppercorns is used for
grinding/cracking, in soup mixes and
pepper mills and in meat, sausage & egg
preparations. Besides other applications,
Green Peppercorns in brine is used for
making sauces and purees and in the food
service sector.
This is a premium quality dry pepper, dried under controlled conditions and yet
keeping the natural green colour and giving out the best flavors packed in low-density
plastic bags in 7 ply paper cartons with 10 to 15 kg net weight having various densities
ranging from 200 - 400 gm / liter.
The catering sector specially utilizes this product in the green pepper steaks. It is
also a popular pickle by itself or mixed with other spices/vegetables. Frozen Green
Peppercorns are used in fresh salads and frozen meals. Export of these items are mainly
directed to West Europe, though they are increasingly gaining acceptance in USA,
Canada and other smaller markets. There are many units which are active in the
production and export of Green Pepper products from India. These items are mainly
produced for export only.
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Green Pepper in Brine
These premium quality light green pepper
berries, after removing all the stones and
other foreign particles are kept in brine
solution for about 45 days till the berries are
matured. This process includes three times
washing and fresh brine solution with salt
solution around 17%±2% and vinegar
around 0.6%±2%; packed in HDPE jars with net drained weight of 25 kg each.
In the Indian context, Pink/Red Pepper is the ripened pepper berries of the Piper
nigrum. India also produces Pink/Red Peppercorns in brine. White Pepper, Sterilized
Black Pepper, Dehydrated Black Pepper, Black, White and Green Pepper Powders and
Cracked Peppercorns are also produced and exported from India.
Black Pepper
Black Pepper Sterilized
Black Pepper in low bacteria is a premium
quality pepper dried under controlled
condition, till the moisture is brought down
to less than 11%, after removing all stones,
other foreign particles and then thoroughly
washed in boiling water before drying. Packed in double-layered poly bags 25 kg net
weight.
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Black Pepper Crushed
Special quality black pepper is crushed and sieved into various sizes varying from
10 - 30 mesh according to the choice of the buyers and packed in double-lined poly bags
of 25 kg each.
Dehydrated Salted Green Pepper
Dehydrated salted Green Pepper is a
product developed by Pepper India
Corporation, it is a 100% substitute for
Green Pepper In Brine and is much more
convenient as it is easier for transportation
and storing as it does not involve any
Brine Solution. It is a product which can
be used instead of Pepper In Brine as it contains both Pepper and Salt in the same
proportion and at the same time maintains the natural green colour.
Spices Board of India
Spices board is a statutory body, which is responsible for the development and
growth of all the major items of Indian spices, having commercial significance. The Board
was constituted as per the Spices Board Act, 1986. Up to the year 1960, the spices Export
Promotional Council was responsible for looking after the export affairs of Indian spices
excluding Cardamom, for which there was „Directorate for Cardamom Development‟
constituted in the same year. Subsequently, the government of India constituted a Cardamom
Board in the year 1966 instead of the Directorate for Cardamom Development.
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Understanding the significance of the coordination of the activities in the export
of spices, the Spices Export Promotion Council and the Cardamom Board were clubbed
together and the spices Board was constituted in 1986.5
The Board consists of
a)
The Chairman
b)
Three members of the parliament of whom two shall be elected by the House of
the people and one by the Council of states.
c)
Three members to represent the Ministries of the Central Government dealing
with
1) Commerce 2) Agriculture 3) Finance
d)
Seven Members to represent the growers of Spices
e)
Ten members to represent the exporters of spices
f)
Three members to represent major spice producing states
g)
Four members one each to represent
h)
5
i)
The planning Commission
ii)
The Indian Institute of Packaging Bombay
iii)
The Central Food Technological Research Institute, Mysore
iv)
Indian Institute of Spices Research, Calicut.
One member to represent spices labour interest
The spices Board Act 1986, Government of India.
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Functions of the Board
As per the provisions in the Spices Board Act, 1986, the following are the functions
assigned to the spices board.
1)
Develop, promote and regulate export of spices.
2)
Grant certificate for export of spices
3)
Undertake programmes and projects for promotion of export of spices
4)
Assist and encourage studies and research, for improvement of processing
and maintenance of quality
5)
Strive towards stabilization of prices of spices for export
6)
Evolve suitable quality standards and introduce certification of quality
through quality marketing of spices for export
7)
Control quality of spices for export
8)
Give licenses, subject to such terms and conditions as may be prescribed
to the manufacturers of spices for export
9)
Market any spice considered necessary in the interest of promotion of export.
10) Provide warehousing facilities abroad for spices.
11) Collect statistics with regard to spices for compilation and publication.
12) Import, with the previous permission of the government, any spice for sale and
13) Advice the Central Government on matters relating to import and export
of spices
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At present, there are 76 items of Indian spices under the control of the Board.
The board has the responsibility of looking after the production, processing and
marketing and it has to assist the production function of other spices also. As per the Act,
the Spices Board has control of the 76 spices.
Registration of owners
Spices Board grants registration to those spices producers who apply for registration,
which is mandatory as per the provisions of section 8 of the Act. Such a registration shall
continue to be in force until the registration authority cancels it. The registered owners shall
furnish returns to the Board in such form and manner as may be prescribed in this regard.
Certificate for the export of spice
As per Act 11, certification for export of spices is mandatory to all those who are
engaged in the business of spices exports. The board, in normal cases will grant certificate on
receipt of application in prescribed form and as per the terms and conditions laid down in
this regard. However, such registration may be cancelled on violation of the terms and
condition of the certificate or when the Central Government thinks it necessary to cancel
the registration for the general interest of the public.
Control by the Central Government
As per section 16 (1) of the Act, the Central Government may, by order notified
in the official Gazette, fix in respect of pepper of any description specified therein.
a) The maximum price or the minimum price, or the maximum and minimum prices,
which may be changed by a grower of pepper or pepper dealer, whether for the
Indian market or for export and
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b) The maximum quantity which may be sold to any person in one transaction.
The Act also provides power to the spices Board to insist any person engaged in
the process of production, supply or distribution or trade and commerce in pepper
to maintain and produce for inspection such books, accounts and records relating
to their business and furnish such information relating thereto. Further, the Act
empowers the Board to enter and search the premises, vehicles, vessels and aircraft if
required to prevent contravention of the orders. The Central Government has the
power to prohibit, restrict or otherwise control the impact of Pepper on a case-bycase basis or generally.
Financial Sources of the Board
The major source of finance for the Board is the appropriation made by the
Parliament by law on its behalf in the form of grants and loans of such sums of money as
the Government considers necessary. The Government constitutes a fund named „Spices
Board fund‟ and credits thereto.
a) Any grants and loans made to the Board by the Government
b) All fees levied and collected in respect of certificates granted
c) All sums received by the Board from such other sources as may be decided by the
Central Government.
The fund so constituted shall be applied for meeting salary, allowances and other
remuneration of the members, officers and other employees of the Board, expenses of the
Board in the discharge of its functions and other incidental expenses as may be necessary
for the proper discharge of the functions specified in the Act.
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The Board prepares a budget for each financial year with estimated receipts and
expenditure and forward the same to the Government. The Board shall also prepare a report
of the activities and functioning for each financial year and a copy of the same shall be
forwarded to the Government. The accounts of the Board shall be maintained and audited in
such a manner as may, in consultation with the Comptroller and Auditor General of India, be
prescribed and a copy of the audited accounts shall be forwarded to the Government.
The Spices Cess Act 1986
Along with the Spices Board Act, the Government of India has passed a Spices
Cess Act in 1986, to provide for the imposition of cess on all spices, which are exported
from India with the purpose of carrying out measures for the development of export of
spices. The Act says “There will be levied and collected by way of Cess for the purpose
of the Spices Board Act 1986, a duty of customs on spices at such rate not exceeding five
per cent ad valorem as the government may specify from time to time.”
The duty of customs so levied shall be in addition to the duty of customs leviable
on spices under the Customs Act 1962 or any other law for the time being in force.6
The Spices Board Rules
The Government of India has framed certain rules for the exercise of the powers
conferred by the Spices Board Act, 1986. Such rules were originally passed in the year
and attended many times subsequently. These rules specify the constitution and composition
of the Board and its committees. It also deals with the research and development of
Pepper market development committee for spices, provision for the constitution of
special committees etc.
6
The spices Cess Act 1986, Government of India
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The spices Board Rules include provisions relating to the certificate of registration to
the exporters, the minimum conditions which should be followed by an exporter for the
grant of the „Spices House Certificate‟ and also the provisions for appeal or complaint by
any aggrieved party and the opportunities for the appellant.
Offices of the Board
The head office of the Board is located at Cochin in Kerala. Twelve regional
offices of the board headed by joint directors at New Delhi, and Saklespur; Deputy
Directors at Cochin, Gangtok, Guavahati, Ahmedabad, Secunderabad, Mumbai Chennai
and Bangalore, Assistant Directors at Culcutta and Unjha are functioning at present.7
There are thirteen Zonal offices headed by Assistant Directors located at Trivendrum,
Muvattupuzha, Calicut, Vandenmettu, Chikmagalore, Madikeri, Shimoga, Bondinayakanur,
Guntur, Tadong, Mangan, Jorethang Kalimpong. Besides, market development offices
headed by Assistant directors are functioning at Saleshpur, Bodimaikanur and Gangtok.
The Board operated field units also as per requirements. The board has maintained
five department nurseries to Karnataka and two in Kerala 1986s. Main research station
headed by Director (Research) at Mylamdumpara and regional stations headed by Senior
Scientists at Sikkim, Sakleshpur and Thadiyankudisai are also functioning.
Programmes and Activities of the Board
Spices Board is responsible for the formulation and implementation of
development programmes for improving productivity and quality of cardamom as well as
post-harvest improvements of spices having export potential. It implements production
7
Annual Report, Spices Board, 2000-01
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programmes for other important spices also. The development activities are carried out
though six regional offices headed by joint director/deputy directors, thirteen assistant
directors, and thirty field offices. These offices maintain liason with growers, agricultural
departments of the states, agricultural universities, banking institutions, local bodies, traders
and exporters. The board maintains department nurseries also to meet the requirements of
spices growers.8
In order to assist the spices growers, the board implements the following
programmes
1)
Extension Advisory Scheme
2)
Production and Supply of quality planting materials
3)
Spice replanting schemes for economically unprofitable plantations providing
subsidies.
4)
Irrigation and land development programmes
a) Western Ghats Development Programmes in Kerala, Karnataka and with
joint financial support from the respective Governments.
b) Tribal development programme- There are large number of Cardamom
plantations in tribal areas and so the board undertakes tribal development
programmes to improve the quality and productivity of cardamom in Such
areas.
5)
Development of infrastructure for the post-harvest improvement and storage
of spices.
8
The Spices Board Rules 1987, Government of India.
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6)
Training programmes for quality improvement of Spices
7)
Development of technology, infrastructure and collaborative studies.
8)
Scheme for promoting organic farming in Spices
9)
Plantation labour welfare schemes like providing educational stipend to the
children of the cardamom estate workers.
10) Researches for crop improvement through Biotechnology, Crop management,
Post-harvest technology etc.
11) Market development programmes
Along with the above, the Board is expected to participate in various national and
international seminars and conferences relating spices.
Now-a-days, various agencies like the Indian Council of Agricultural Research.
Agricultural universities, Spice Board, Spices Export Promotion Council, Central Plantation
Crops Research Institute and volunteer organizations have engaged in various research
activities to promote the production of pepper in various centers. During the last two
decades, various varieties were introduced in pepper for commercial production and
different recommendations were also made for standardizing agro-technique plant
protection measure and for improvement.
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