Do the Macroeconomic Determinants of Export Destinations Matter? The Case of Indian Black Pepper

Black pepper, often referred to as ‘black gold’ and ‘king of spices’, is a highly sought-after spice worldwide. Global demand for the product has surged significantly due to its various beneficial properties. Although India remains a major producer and exporter of black pepper, its share in the global spice market has declined. Understanding the macroeconomic factors influencing this trend is crucial for competing in the international market. Therefore, this paper focuses on analyzing the export performance of Indian black pepper and examining the influence of key macroeconomic factors from the perspective of its major export destinations. The study employs secondary data for 34 years, from 1988 to 2021. The study considers major macroeconomic variables such as exchange rate, gross domestic product (GDP), interest rate, inflation rate, tariff rate, and world crude oil price. The ranking method has been adopted to identify the top export destinations of Indian black pepper exports; further, the export sales growth and country-wise spread of Indian pepper exports have been checked to assess the export performance. The panel regression analysis has been adopted to examine the influence of selected macroeconomic factors of major exporting destinations on Indian black pepper exports.