Black Pepper - World Trade

World Trade

Peppercorns (dried black pepper) are, by monetary value, the most widely traded spice in the world, accounting for 20 percent of all spice imports in 2002. The price of pepper can be volatile, and this figure fluctuates a great deal year to year; for example, pepper made up 39 percent of all spice imports in 1998. By weight, slightly more chili peppers are traded worldwide than peppercorns. The International Pepper Exchange is located in Kochi, India. Participation on the IPE however is domestic with regulatory restrictions on international membership on local exchanges; something common to almost all Asian commodity exchanges.

As of 2008, Vietnam is the world's largest producer and exporter of pepper, producing 34% of the world's Piper nigrum. Other major producers include India (19%), Brazil (13%), Indonesia (9%), Malaysia (8%), Sri Lanka (6%), China (6%), and Thailand (4%). Global pepper production peaked in 2003 with over 355,000 t (391,000 short tons), but has fallen to just over 271,000 t (299,000 short tons) by 2008 due to a series of issues including poor crop management, disease and weather. Vietnam dominates the export market, using almost none of its production domestically; however its 2007 crop fell by nearly 10% from the previous year to about 90,000 t (99,000 short tons). Similar crop yields occurred in 2007 across the other pepper producing nations as well.