Spices and Condiments (1+1)

Export

 
• The changed economic order in the context of globalisation and liberalisation of world trade in agriculture has opened up new vistas of growth. The spices sector is one of the key areas in which India has an inherent strength to dominate the global markets. Recorded history elucidates the extreme fascination of the rest of the world for the fabled wealth of India—the variety of spices. As a result of the recent WTO regime, quality competitiveness has emerged as the prime mover of international food marketing. The present dispensation, of course, widens the access to global markets, but at the same time raises many challenges for survival of the spice industry.
• In India, spice exports have been consistently moving up during the last decade. The Spices Board under the Ministry of Commerce has the mandate for the export of spices from the country. Spices account for about 16% in quantity and 19% in value of the total horticultural exports from India. India's share of the world spices trade is estimated as 40-50% by volume and 25% by value. During 1999-2000, Indian spices exports rose creating an all-time record in terms of value. Thus, for the last couple of years, India has been enjoying a commanding position in the global market. However, in 2000-2001 the scenario changed due to the fall in the export of black pepper. According to the estimates of the Spices Board, Indian spice export during 2000-2001 was estimated at 230,000 tonnes valued at Rs. 1612.07 crores as against 236,142 tonnes valued Rs. 2025.09 crores in the previous year, showing a decline of 20% in value. During 1999-2000, 49% of the world trade in spices was Indian spices. The country enjoyed monopoly in the export of spice oils and oleoresins, with a contribution of 16% of the total export earnings from spices during 1999-2000; this was followed by chillies (12%). The United States of America is the major importer of Indian spices. In 1999-2000, 38% of our spices export earnings came from the USA. Other countries importing Indian spices are the United Kingdom, Japan, Germany, Canada, Netherlands, Russia, Sri Lanka, UAE, Malaysia, etc.
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Countries	1997-1998	1998-1999	1999-2000
United States of America	30	30	38
United Kingdom	6	6	6
Japan	5	5	5
Germany	4	4	4
Canada	3	3	4
Netherlands	2	2	3
Russia	4	2	3
Sri Lanka	3	5	4
UAE	5	4	3
Malaysia	2	2	2
Others	36	37	28

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Source: Spices Board, Cochin)
• Indian pepper exports, which account for a major part of the global share, seems to be facing a stiff threat from the new entrants, especially Vietnam. During 2000, the world pepper output was estimated at Rs. 2, 63,000 tonnes. This better supply position and the competition in the international markets have put pressure on the price. As a result of this, black pepper export contributed only 20% of the total export earnings during the fiscal year 2000-2001; a reduction of 55% was registered in the black pepper valued at Rs. 326.33 crores as compared to 42,806 tonnes valued at Rs. 884.88 crores in 1999-2000. The way to meet the challenge is to develop a market-oriented production strategy, that is, to increase productivity, encourage value additions and adopt organic cultivation. With better production and the resultant decline in the price, Indian cardamom (small) export was increased by 70% in quantity and 77% in value. Export of large cardamom also increased by 36% in quantity and 63% in value.
• Better production in the competing countries like China and Pakistan and the low volume of import by Bangladesh has resulted in the decline in export of chillies during 2000-2001. However, due to better production and the resultant price fluctuation, India was able to achieve the export target set by the Spices Board. The export of ginger and turmeric also registered a decline in both quantity and value.
• Seed spices account for 20% of the total foreign exchange earnings contributing to a volume of 13% of the total spice export. Among seed spices, the export of cumin marked a record increase with 125% in quantity and 243% in value during 2000-2001 as against the export during 1999-2000. This achievement was mainly due to the poor production in competing countries like Iran, Syria, Turkey, etc. The export of value-added products like spice oils and oleoresins has been steadily increasing during the past years and during 2000-2001 India exportd 3625 tonnes valued at Rs. 364.05 crores.
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