Export of Spices India

EXPORT OF SPICES INDIA

Following is the list of spices being exported from India to East Asia, the United States, West Asia, European Community and Africa, UAE, Singapore, Germany, France, Canada, Sri Lanka, Japan, Malaysia, Russia, Bangladesh, Pakistan, Saudi Arabia and Netherlands.

Although other countries like China, Brazil, Thailand, etc., have also started export of spice, but even then the demand for Indian spices is not being affected.

Table : Item wise export of spices from India

Spices exports have registered substantial growth during the last decade, registering an annual average growth rate of 11.1% in value terms. During the year 2007–08, the export earnings from spices have surpassed US$ 1 billion mark for the first time and registered an all time high both in terms of quantity and value in spice exports. In 2007–08, the export of spices from India has been 444,250 tonnes valued US$ 1,101.80 million registering an increase of 39% in value over 2006–07. India commands a formidable position in the World Spice Trade with 48% share in volume and 44% in value (Table 7.4 and Figure 7.2).

The history of Indian spice is very old, as there are evidences of India having trade of vegetable drugs and spices with Greece even before Alexander’s invasion in 327 B.C. India’s glory for the land of spice and perfumery attracted foreigners (French, British, Arab, Portuguese and Dutch). Portuguese invaded India and controlled over the spice trade of the country. They were taken over by Dutch, who exploited spices of India for many years. Later the British Empire took over and shared most of the world spice trade with Holland. Arabs had taken the spice products from southern India and established it even after independence Spices have continued to be the main attraction of inter-national trade in India. The Government of India had established separate board as ‘Spice Board of India’, for promoting the spice trade which control their production and quality. Besides, the Spice Board, the Indian Institute of Spices Research (HSR) was established at Calicut in 1986, which is responsible for providing latest biotechnology for more production of spices.

         India’s share in world trade of spices (2007–08)

Southern states of India remained the main centre of region of spice production. Even today, Southern states of the country produce most of the spices.

At present Kerala tops in the production of black pepper, cardamom and ginger, while producing substantial quantities of long pepper and turmeric; Andhra Pradesh has monopoly in the production of turmeric and chillies. More than half of the country’s chillies and turmeric production is produced by the State of Andhra Pradesh alone. Currently about 50 million tonnes of chillies were produced by the Andhra Pradesh.

The spices export during April–December 2008 is estimated as 334,150 tonnes valued Rs. 3,810.95 crore (US$ 860.40 million) as against 325,320 tonnes valued Rs. 3,320.00 crore (US$ 821.45 million) in the corresponding period of the last financial year. Compared to last year, the export has shown an increase of 15% in rupee value and a 3% in quantity. In dollar terms, the increase is 5%, according to data released by Spices Board.

Spice oils and oleoresins including mint products contributed 42% of the total export earnings. Chilli contributed 21% followed by pepper 8%, cumin 8% and turmeric 5%.

During April–December 2008, export of most of the major spices have shown an increasing trend both in terms of quantity and value as compared to the same period of last year. However, exports of pepper and chilli have declined both in terms of quantity and value as compared to last year. During the period, export of ginger and mint products has declined in quantity only.

During April–December 2008, the export of pepper from India has been 19,100 tonnes valued at Rs. 317.77 crore as against 27,580 tonnes valued Rs. 400.20 crore of last year. The average export price of pepper has gone up from Rs. 145.11 per kg in 2007 to Rs. 166.37 per kg in 2008. The low inventory in the major international markets due to the economic recession is reported to be the major reason for the decline in exports.

During the period, India has exported 141,000 tonnes of chilli and chilli products valued Rs. 793.18 crore as against 149,755 tonnes valued Rs. 807.03 crore of last year. The traditional buyers of Indian chilli, viz. Malaysia, Indonesia and Sri Lanka continued their buying this year also. It is expected that the export will pick up in the coming months as the new crop comes to market.

The export of seed spices has shown an increasing trend both in the quantity and value as compared to last year. The export of coriander seed during April–December 2008 has been 19,600 tonnes valued at Rs. 137.23 crore as against 19,150 tonnes valued at Rs. 77.69 crore of last year, registering an increase of 77% in value. The unit value of export has gone up from Rs. 40.57/kg in 2007 to Rs. 70.01/kg in 2008.

The export of cumin seed during April–December 2008 has increased considerably and the export has been 28,500 tonnes valued at Rs. 296.13 crore as against 18,885 tonnes valued at Rs. 199.09 crore. The export of cumin up to December 2008 is an all-time record both in terms of quan-tity and value. The export of cumin has shown an increase of 51% in quantity and 49% in value terms as compared to last year. The reported crop failure in other major producing countries, viz. Syria, Turkey and Iran has helped India to achieve this substantial increase in the export of cumin.

The export of value-added products like curry powder and spice oils and oleoresins have also shown substantial increase both in terms of quantity and value as compared to last year. During April–December 2008, a total quantity of 10,500 tonnes of curry powder and masalas valued Rs. 124.45 crore has been exported as against 8,375 tonnes valued at Rs. 81.10 crore of last year. During April–December 2008, the export of spice oils and oleoresins has been 5,550 tonnes valued at Rs. 574.23 crore as against 4,815 tonnes valued at Rs. 404.04 crore of last years, registering an increase of 42% in value and 15% in volume.

Against the export target of 425,000 tonnes valued Rs. 4,350.00 crore (US$ 1,025.00) for the year, the achievement of 334,150 tonnes valued Rs. 3,810.95 crore (US$ 860.40 million) up to December 2008 is 79% in quantity, 88% in rupee value and 84% in dollar terms of value. The export of spices like cumin, fenugreek, nutmeg and mace, vanilla and other seeds have already achieved the respective targets fixed for the year 2008–09.