Management of Pepper Economy in India an Agribusiness Approach

Abstract

Black pepper (Piper nigrum), the king of spices has been an important agricultural newlinecommodity in India. It is mainly used as spice and its consumption is also known for health newlinebenefits. The study is an empirical investigation on growth in area, production, productivity, newlinetrends in prices, forecasting the prices and projection of exports. Kerala and Karnataka states newlinehave been selected for the study as they stand in first and second position among states growing newlineblack pepper. Primary data was collected from Kodagu and Hassan growers. The secondary data newlineused for the study was from (2006-07 to 2015-16). Analytical techniques used for the study were newlinegrowth rate, trend analysis, budgeting techniques, ARIMA, nominal protection coefficient, newlinemarkow chain model and co integration technique. newlineNegative growth rate was observed for area and production in India and Kerala while in newlineKarnataka there was a positive growth rate with 11.98 per cent in area and 15.97 per cent in newlineproduction. Spices Board is actively working on promotional activities in order to increase the newlinearea of black pepper in traditional and nontraditional areas. Financial feasibility of black pepper newlinerevealed NPV to be 8,21,018, B:C ratio 1.53 and payback period of 5.97 years . Increase in newlinearrivals and prices of black pepper are observed in the major markets of Kerala and Karnataka. newlineARIMA expressed prices of black pepper are going to increase in the coming months. Export newlineanalysis signified United States of America is having much demand on Indian black pepper. newlineBlack pepper showed less than unity and found to be competitive in the International market. newlineKochi market prices are well integrated with the New York market prices. Research and newlineextension efforts for cultivation of black pepper are to be initiated by Government for enhancing newlineproductivity by evolving high yielding varieties and diversified usage of black pepper. newline