The Hindu Business Line : <I>Organic pepper production faces constraints</I>

Organic pepper cultivation is faced with production and marketing constraints in the producing countries, where it is a smallholder crop and hence encounters special problems associated with it.

Organic pepper being a relatively new product marketing, it is faced with a number of challenges, according to Dr C.K. George, former Executive Director, Spices Board and currently Advisor, Organic Agri-products and Export Division of Peermade Development Society.

Novel product

Organic pepper is one of the novel products prepared by some producing countries, including India, Indonesia and Sri Lanka. The basic standards applicable for production of organic pepper are those established by IFOAM. There is increasing demand for both black and white organic pepper. The European Union, US and Japan are the important markets. The current market size is small but demand is growing at an annual rate of 15-20 per cent. Other developed and some developing countries are likely to source organic pepper in coming years. In fact, there is no market now in any of the producing countries market for organic pepper.

Production constraints

Small farmers often get tempted to use chemicals for supplying plant nutrients and for controlling pests and diseases. For example, control measures in accordance with organic production technology, which are effective against pests such as the Pollu beetle (berry borer) and gall forming thrips, and diseases such as, Phytophthora foot-rot and slow-wilt, are not yet available. These pests and diseases can cause heavy losses to farmers if the gardens are severely infected. The likelihood of such infection is high where organic pepper is cultivated among other traditional farms. Unfortunately, concerted research efforts have yet to be initiated towards evolving simple and effective organic control measures, he said.

Marketing constraints

Organic pepper cannot be sold at the same price of conventional pepper, it is unlikely that there will be any significant demand for organic pepper in producing countries in the near future. The current demand does not even constitute 0.5 per cent of the total import of conventional pepper. The popularity of organic pepper is limited to only a few western countries.

Generally, a premium of 25 per cent is available for organic products. Inexperienced exporters quote lower prices and it adversely affects the better prices that can be realised for organic pepper. At present, the trend is towards a narrowing down the price difference between organic pepper and conventional pepper, he told Business Line.

Some buyers insist on high quality for organic pepper. Unlike conventional pepper, organic pepper is expected not to have any detectable level of chemical fungicides and insecticides.

Certain buyers make payments only after taking delivery of the shipment and testing the product for different parameters including those specifically prescribed by them. The delay in receiving payments places severe financial constraints on exporters of organic pepper.

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