The Hindu : Business : Spices export up 45 per cent

Online edition of India's National Newspaper
Tuesday, Nov 06, 2007
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Business

Spices export up 45 per cent

Special Correspondent

Pepper, cardamom (large) do well

Improved performance by value-added spices
58 per cent of volume realised
in six months

KOCHI: In the first half of the financial year 2007-08, spices export has reached the level of 219,640 tonnes valued Rs.2,100.34 crore ($514.10 million). Compared with the export performance of 180,500 tonnes valued Rs. 1627.52 crore ($353.90 million) in the same period of 2006-07, the achievement during the year is higher by 22 per cent in quantity, 45 per cent in dollar terms and 29 per cent in rupee terms and of value.

As against the target of 380,000 tonnes valued at Rs. 3,600 crore ($875 million) fixed for the year, 58 per cent of quantity and 59 per cent of value have been realised in the first six months.

Good showing

Spices such as pepper, cardamom (large), chilli, coriander, fennel, fenugreek and other miscellaneous spices performed better than last year. Among the value-added spices, curry powder, spice oils and oleoresins and mint products have done better compared with last year. The performance of some of the items such cardamom (small) ginger, cumin, celery, garlic and vanilla fell short of last year’s performance.

During April-September 2007, the country exported 17,000 tonnes of pepper valued Rs. 245.43 crore, which is higher by 37 per cent in quantity and 126 per cent in value of last year same period achievement of 12,450 tonnes and Rs. 108.66 crore.

During the period, Indian pepper has become more competitive in the international market as compared to other major producing countries like Vietnam, Indonesia and Malaysia.

During the first half of this financial year, India exported 100,000 tonnes of chilli valued at Rs. 549.25 crore against 58,285 tonnes valued Rs. 285.38 crore of last year. The demand from the traditional buyers such as Malaysia, Sri Lanka, Indonesia and Bangladesh are on the rise. The export of chilli accounts for 46 per cent in terms of quantity and 26 per cent in terms of value of the total export of spices from India. Presently, India is the main source of red chilli for international market. After the lean production of last year, the new Chinese crop will reach the market only by October. Pakistan, the other producer, may require a large portion of their September crops for internal consumption

Among the seed spices, coriander, fennel and fenugreek performed better than last year. During the period April-September 2007, 12,900 tonnes of coriander valued at Rs. 49.49 crore were exported against 10,550 tonnes valued at Rs. 38.75 crore in 2006-2007.

Adverse conditions

It is reported that the East European countries such as Romania and Bulgaria, where Coriander is produced, has suffered drought condition and this may have some impact on their crop.

During the year 2,975 tonnes of fennel valued Rs. 16.59 crore exported against 2,150 tonnes valued Rs. 13.39 crore last year. In the same period, export of fenugreek has increased to 7,100 tonnes valued Rs. 19.66 crore against 4,300 tonnes valued at Rs. 12.86 crore last year.

Decline in value

In the case of cumin seed there is a decline in export, that is, from 16,940 tonnes to 11,250 tonnes registering a decline of 34 per cent.

However, the decline in value is only 2 per cent, as the export unit value realisation has gone up from Rs. 72.90 a kg in 2006-07 to Rs. 107.53 a kg in 2007-08. It is reported that the crop in Syria is less by about 30 per cent as a result of crop loss owing to rain. This indicates a bright future for the export of cumin in the coming months.

The export of valued-added spices such as curry powder, spice oils & oleoresins and mint products have shown an increase of 30 per cent, 3 per cent and 13 per cent respectively in terms of value. During the first half of the current financial year 5,600 tonnes of curry powder valued at Rs. 53.93 crore were exported from India as against 4,705 tonnes valued at Rs. 41.40 crore last year.

The unit value has increased from Rs. 88 a kg. to Rs. 96 a kg. In the case of oils and oleoresins, the quantity exported has increased from 3,125 tonnes to 3,250 tonnes and value realisation from Rs. 265.27 crore to Rs. 273.23 crore.

During the period, the export of mint products has also increased from 8215 tonnes valued at Rs. 509.93 crore to 9000 tonnes valued Rs. 574.50 crore. The mint products accounts for 27 per cent in terms of value of the total export of spices from India.

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