INTRODUCTION

If the ghosts of Christopher Columbus and Vasco da Gama continue craving

for new sea routes to India's fabulous spices, they won't need a ship to ride
across the unknown:

Spices constitute an important group of agricultural commodities which are

virtually indispensable in the culinary art. They can be primarily defined as
farm products used in various forms viz; fresh, ripe, dried, broken, powdered
etc. which contributes aroma, taste, flavour, colour and pungency to food
rather than a lone food seasoning factors.

Spices may be either bark, buds, flowers, fruits, leaves, roots, seeds, stigmas
and styles or the entire plant tops. They are well known as appetizers or
preservatives and many of them have rich medicinal properties and are used
in pharmaceutical, perfumery, cosmetic products, religious rituals etc.

India is known as “The home of spices”. No Indian meal is considered

complete without the tangy and delectable flavour of Indian spices, locally
known as ‘masala’. Indian spices famous the world over for their gastronic
value are known to possess high medicinal values. There is no other country
in the world that produces as many kinds of spices as India. Some of the
most widely consumed spices in the country inter alia include: chilli (Lal
Mirach), cinnamon, cumin (Jeera), curry leaf (Curry Patta), fennel (Saunf),
asafoetida (hing/heeng), basil (Pudina), Bay Leaves (Taj Patta), cardamom
small (Chotti Elaichi), cardamom—large (Badi Elaichi), ginger (Adrak),
mustard, bishops weed (Ajwain), cassia (dal chini), celery (Kala Jeera),
clove, coriander (Dhania), fenugreek (Methi), garlic (Lahson), kokam,
mint, onion, parsley, pomegranate, turmeric (Haldi), tamarind (Imli) pepper
(Kali Mirach), poppy (Post Dana/Khaskhas) rosemary and vanilla. The
climate of the country is found suitable for growing almost all spices.

Indian spices are renowned all over the world since many centuries. Even
before the advent of currency transactions sailors from far off lands used to
come and barter their goods for Indian spices. It is not an exaggeration if we
say that even today the aroma of Indian spices can be felt at the nook and
corner of the world. This aroma had inspired our Henna and Herbal products
buyers in making us exporters of spices also.

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India is one of the largest producer, consumer and exporter of spices. India is
reported to grow over 50 spices in different parts of the country. The Spices
Board, under the umbrella of Ministry of Commerce and Industry,
Government of India is the apex body for promoting exports of Indian
spices. Established in 1987, the Board has been playing an important role as
a developmental, regulatory and promotional agency for Indian spices. Its
broad-based activities include formulation and implementation of quality
improvement systems, research and development programmes, imparting of
education and training to farmers, processors, packers and exporters on post
harvest handling, etc. On the promotion of spices, the Spices Board is
regularly participating in international food fairs, assisting exporters for
trade fair participation, sending business delegations to identified markets
for export development.

INDIA’S EXPORTS

(i). India’s Exports—Segment wise. According to the data released by the

Spices Board, India’s exports of spices in 2007-08 registered a growth of
24.04 per cent over the previous year when the same reached a level of Rs

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4,435.50 crore as against Rs 3,575.75 crore in the previous year. A glance
at the table reveals that in the year 2007-08, Mint products emerged as the
topmost item of exports and had registered a steep growth of 16.31 per cent
over the previous year by reaching a level of Rs 1,280.50 crore as against
Rs1,100.95 crore in the previous year. Other spices showing a significant
growth during the period comprised: pepper (69.66%), coriander (47.75%),
cumin (44.67%), chilly (35.87%), curry power, paste and condiments
(27.69%), and fenugreek (22.27%). On the other hand, spices going a steep
fall during the period comprised: garlic (81.20%), Nutmeg & mace
(32.73%), and Ginger fresh/dry (29.56%).

EXPORT PROCEDUER

Speaking recently about the export prospects of spices, Mr. Thomas Philip,
Chairman, All India Spices Exporters Forum said that India may soon
emerge as the world’s leading producer of processed spices doubling annual
export earnings to US$1 billion within the next five years. For achieving
this, he said that a conducive industry environment and stable policy
framework is necessary for such growth. Indian spices, he further added,
have changed from the decade ago scenario with value added or processed
goods contributing bulk of revenue instead of primary raw materials. The
change has taken place during the last one decade. In 1990, 83% of India’s
pepper export was in primary form. Today however only 25% of pepper
exports are in primary raw material form while the rest goes in processed
form.

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 State Major spices grown

Andaman & Pepper, chilly, ginger, clove, nutmeg, cinnamon

Nicobar
Andhra Pradesh Chilly, Ginger, turmeric, coriander, mustard seed. Garlic and tamarind
Arynachal Chilly, Ginger and turmeric
Pradesh
Assam Chilly and turmeric
Bihar Chilly, ginger, turmeric, coriander, mustard seed and garlic
Chhattisgarh Chilly, ginger, turmeric, mustard seed and garlic
Gujarat Chilly, ginger, turmeric, coriander, cumin, fennel, fenugreek,
ajwanseed, dill seed, mustard seed and garlic
Himachal Chilly, ginger, turmeric, coriander and garlic
Pradesh
Jammu & Chilly, ginger, turmeric, garlic and saffron
Kashmir
Karnataka Pepper, cardamom (small), chilly, ginger, turmeric, coriander, mustard
seed, garlic, tamarind, clove, nutmeg, cinnamon and sweet flag
Kerala Pepper, cardamom (small), chilli, ginger, turmeric, garlic, tamarind,
clove, nutmeg and cinnamon
Maharashtra Chilly, ginger, turmeric and garlic
Meghalaya Chilly, ginger, turmeric, mustard seed and tejpat
State Major spices grown

Manipur Chilly, ginger, turmeric and mustard seed

Mizoram Chilly, ginger, turmeric and garlic
Madhya Chilly, ginger, turmeric, coriander, mustard seed and garlic
Pradesh

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 Nagaland Chilly,, ginger, turmeric and garlic
Orissa Chilly, ginger, turmeric, coriander, mustard seed and garlic
Punjab Chilly, celery and garlic
Rajasthan Chilly, ginger, turmeric, coriander, cumin, fennel, fenugreek,
ajwanseed, dill seed, mustard seed, poppy seed and garlic
Sikkim Cardamom (large), ginger and turmeric
Tamil Nadu Pepper, cardamom (small), chilly, ginger, turmeric, coriander, mustard
seed, garlic, tamarind and clove.
Tripura Chilly, ginger and turmeric
Uttar Pradesh Chilly, ginger, turmeric, coriander, fennel, fenugreek and garlic
Uttaranchal Chilly, ginger, turmeric, coriander, fenugreek and garlic
West Bengal Cardamom (large), chilly, ginger and turmeric

CHILLI:

Chilli is the dried ripe fruit of the genus Capsicum. Capsicum annuum is an
annual sub –shrub, the flowers of which are borne singly and fruits usually
pendent, which provide red peppers, cayenne, paprika and chillies and sweet
pepper (bell pepper) a mild form with large inflated fruits.
Capsicum frutescence is a perennial chilly with small sized pods which are
highly pungent. It is commonly known as ‘bird chilly’ and ‘Tabasco’.
Chilli is the largest spice item exported in terms of volume and it also
occupies the second position in terms of value. During 2008-09, it accounted
for 40 per cent in volume and 20 per cent in value terms of total spices
exports

Origin and Distribution

Chilly is reported to be a native of South America and is widely distributed
in all tropical and sub tropical countries including India. It was first

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introduced in India by Portuguese towards the end of 15th Century. Now it
is grown all over the world except in colder parts.

Uses
Dry chilly is extensively used as spice in curried dishes. It is also used as an
ingredient in curry powder and in seasonings.

Chilli is the largest spice item exported from India in terms of volume
and it also occupies second position in terms of value. During 2008-09,
chilli accounts for 40% in volume and 20% in value terms of total
export of spices from India. The mandatory quality testing of chilli and
chilli products by the Board has made the Indian chilli more acceptable
in the international markets and helped to achieve this higher level of
export in chilli. During the year, India has exported 188,000 tonnes of
Chilli and Chilli products valued Rs.1080.95 crores as against 209,000
tonnes valued Rs.1097.50 crores of last year. The traditional buyers of
Indian chilli viz. Malaysia, Indonesia and Sri Lanka were active in the
market. However, export to Bangladesh has reduced considerably
during the year as compared to last year, which resulted in the overall
decline in export of chilly.
During the year our export to Malaysia was 40,615 MT followed by Sri
Lanka (37790 MT), Pakistan (22375 MT), UAE (18,815 MT) and USA
(15680 MT).

PEPPER

Description
Pepper is the dried mature berry of Piper nigrum, a climbing, perennial
shrub mostly found in hot, moist region of Southern India. Under cultivation
pepper vines are trailed over support as columns, 5-6 mtr tall, 1-2 meter
diameter.
The root system confined to 75-100 cm radius and depth. The inflorescence
is a pendent spike, 3-15 cm long with 50-150 flowers. Flowers are minute,

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white pale yellow, arranged spirally on fleshy pedantries. The specie is
naturally self-pollinated and pollen dispersal is aided by the presence of
water droplets. Fruit is a single seeded drupe often called berry. It is
spherical in shape, green in colour, changing to red on ripping.

Origin and Distribution

Pepper is considered originated in the hills of South Western Ghats of India.
It is now grown in Indonesia, Malaysia, Sri Lanka, Thailand, China,
Vietnam, Cambodia, Brazil, Mexico, and Guatemala apart from the country
of origin.
Pepper requires hot and humid climate and grows between 20 degree North
and South latitudes, from sea level to up to 1500 meters. The crop tolerates
temperatures between 10 degree and 40 degree C. A well-distributed annual
rainfall of 125 to 200 cm is considered ideal for pepper.

Uses
Pepper is largely used by meat packers and in canning, pickling, baking,
considering for its preservative value. It has the ability to correct the
seasoning of dishes, therefore used as a final dash at the end of cooking to
effectively adjust the flavour. It is an important component of culinary
seasoning of universal use and is an essential ingredient of numerous
commercial foodstuffs. It is also used as an ingredient in spice mixes.
Other products in use are pepper oil, oleoresin, micro encapsulated pepper,
green pepper in brine, dehydrated green pepper, frozen pepper etc.
Pepper is an essential ingredient in Indian system of medicine. The major
functional properties of pepper are analgesic, anti-pyretic, anti-oxidant and
anti-microbial.

USA is the largest buyer of Pepper in the world market. Fluctuations in

the import of
pepper by USA have a direct impact on the world pepper trade. During
2008, USA has imported a total quantity of 55,000 MT of pepper as
against their average import of about 60,000 MT per annum. It is
reported that, due to economic slow down, the major US companies are
keeping low inventories resulting in low import volume.
In recent years, Indian production is stagnant around 50,000 MT
due to low productivity of aged and disease affected pepper plantations.
Our competitors like Vietnam with an annual production of almost
double that of India has now become one of the major suppliers of
pepper in the international markets. However, Indian pepper fetches a

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premium price in major markets because of its preference and intrinsic
qualities. During the year 2008-09, India has exported a total quantity
of 25,250 tonnes of pepper valued Rs.413.74 crores as against 35,000
tonnes valued Rs.519.50 crores of last year, registering a decline of 28%
in volume and 20% in value.
Our exports to all major destinations like USA, EU etc. has
declined during the year. In 2008-09, USA continued as our major
market for pepper and has imported 10,050 MT, accounting for 40%
of our total export of pepper. The other major buyers are UK (1475
MT), Italy, (1290 MT), Canada (1265 MT) and Germany (1200 MT).
The average fob export price of Pepper has gone up from Rs.148.43 per
kg in 2007-08 to Rs.163.86 per kg in 2008- 09.
Turmeric:
Description
Turmeric is the boiled, dried, cleaned and polished rhizomes Curcuma longa.
The plant is a herbaceous perennial, 60-90 cm high, with a short stem and
tufted leaf. There are 7 to 12 leaves, the leaf sheaths forms the pseudo stem.
The lamina is green above and pale green below and has a length of 30-40
cm and width 8-12 cm. Inflorescence is a central spike of 10-15 cm
length.About 30 flowers are produced in a spike. Seeds are produced in
capsules and there will be one to numerous sunken capsules in an
inflorescence.

Origin and Distribution

It is a native of India. Apart from India, it is cultivated in Pakistan, Malaysia,
Myanmar, Vietnam, Thailand, Philippines, Japan, Korea, China, Sri Lanka,
Nepal, East & West Africa, South Pacific Islands, Malagasy, Caribbean
Islands and Central America. In India, it is cultivated in the States of Andhra
Pradesh, Maharashtra, Orissa, Tamil Nadu, Karnataka and Kerala.
Turmeric is a tropical crop cultivated from sea level to 1200 meter. It grows
in light black, black clayey loams and red soils in irrigated and rainfed
conditions. The crop cannot stand water logging or alkalinity.

Uses
Turmeric is used to flavour and to colour foodstuffs. It is a principal
ingredient in curry powder. Turmeric oleoresin is used in brine pickles and
to some extend in mayonnaise and relish formulations, non-alcoholic

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beverages, gelatins, butter and cheese etc. The colour curcumin extracted
from turmeric is used as a colourant.
Turmeric is also used as a dye in textile industry. It is used in the preparation
of medicinal oils, ointments and poultice. It is stomachic, carminative, tonic,
blood purifier and an antiseptic. It is used in cosmetics. The aqueous extracts
has biopesticidal properties.

Turmeric
Export of turmeric from India during 2008-09 is an all time high both in
volume and value. The export has been 52,500 MT valued Rs. 248.58
crores as against 49,250 MT valued Rs.157.00 crores. The major buyers
are UAE (5910 MT), Iran (5335 MT), Bangladesh (4595 MT),
Malaysia (4825 MT) and Japan (3090 MT). India is the largest supplier
of Turmeric in the world market. The other major suppliers are
Vietnam, Indonesia and Myanmar. It is reported that the medicinal and
cosmetic use of turmeric is increasing significantly over the years.

Vanilla:

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Description
Vanilla, a member of the orchid family is a climbing monocot possessing a
stout, succulent stem; short petioled, oblong leaves; about 20 cm long. The
inflorescence is a raceme with 20 or more flowers. Flowers are 6 cm long,
2.5 cm wide, either yellowish green or white. Fruit popularly known as
‘beans’ or ‘pod’ is a capsule, nearly cylindrical and about 20 cm long.

Origin and Distribution

It is a native of Atlantic Coast from Mexico to Brazil. The important vanilla
producing countries are Madagascar, Mexico, Tahiti, Malagasy Republic,
Comoro, Reunion, Indonesia, Seychelles and India.
Vanilla thrives well from the sea level up to 1000 meter, under hot, moist,
tropical climate with adequate well-distributed rainfall. Natural growth is
obtained at latitudes, 15 degree North and 20 degree South of the equator.
The optimum temperature ranges from 21-32 degree C and rainfall 2000-
2500 mm annually. Dry period of about 2 months is needed to restrict
vegetative growth and induce flowering. It grows best in light, porous and
friable soils with pH. 6-7. Partial shade is essential for successful cultivation.

Uses
Vanilla is used mainly as a flavouring material; a critical intermediary in a
host of pharmaceutical products and as a subtle component of perfumes. As
a flavouring agent, it is used in the preparation of ice creams, milk,
beverages, candies, confectionaries and various bakery items.

Area and Production

The area of vanilla cultivation in the world recorded during 1999 was 37,525
ha. with production 4403 tonnes. The major vanilla producing countries are
Madagascar, Indonesia, Mexico. Comoros and Reunion.

In India, vanilla cultivation is gaining in Kerala, Karnataka and Tamilnadu

since early 1990s. The area under cultivation at present is about 1000 ha, of
which about 30% has started giving yield. The present production of
processed vanilla is estimated to be around 6-8 tonnes annually in India.

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Market
The aggregate global demand for vanilla is estimated at about 4500 mts a
year. The countries, USA, France, UK and Germany account for 60% of
world imports, the USA absorbing more than 30%, France, UK and
Germany around 10%. These 3 countries are also major re-exporters of both
vanilla beans and processed vanilla products.
In India Vanilla is predominantly grown by small and marginal growers in
their fields interplanting with other crops. It is grown largely in organic
situations though not certified.

Kokam

Description
Kokam is a slender evergreen small tree with drooping branches. It is a
dioecious tree growing up to 18 mtr high. The fruit is spherical, purple, not
grooved having 5-8 seeds compressed in an acid pulp.

Origin and Distribution

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The tree is oriental in origin, found in Southern India, particularly in the
tropical rain forest of Western Ghats of Ratnagiri, Konkan, Coorg and
Wynadu region. It is also found in the evergreen forests of Assam, Khasi,
Jantia hills, West Bengal and Gujarat. The crop prefers warm and
moderately humid tropical climate with a total rainfall range of 2500-
5000mm grows under a mean annual temperature of 20-30 degree C, 60-
80% humidity and up to an altitude of 800 mtrs .

Uses
The ripened, rind and juice of Kokkam fruit are commonly used in cooking.
The dried and salted rind is used as a condiment in curries. It is also used as
a garnish to give an acid flavour to curries and for preparing attractive, red,
pleasant flavoured cooling syrup. Kokkam butter used as an edible fat, is
nutritive, demulcent and antiseptic. The rind has antioxidant property

Cardamom

Description
Cardamom of commerce is the dried ripe fruit (capsules of cardamom plant)
often referred as the “Queen of Spices” because of its very pleasant aroma
and taste. Cardamom is a perennial, herbaceous, rhizomatous plant. Based
on the nature of panicles, three varieties are recognized viz. Malabar with
prostrate panicle, Mysore with erect panicle, and Vazhukka with semi erect
panicle. Plants are of medium size (2 to 3 mtr height) with pubescent leaves
(on the dorsal side) and fruits globose in the case of Malabar, whereas plant
robust (3 to 4 mtr height) with leaves glabrous on both sides with ovoid
capsules in the case of Mysore. Vazhukka variety is a mix of both the above
in physical characteristics.

Indian cardamom is offered to the international markets in different grades:

'Alleppey Green Extra Bold' (AGEB), 'Alleppey Green Bold' (AGB) and
'Alleppey Green Superior' (AGS) are names that register instant appeal
worldwide. Cardamom oil is a precious ingredient in food preparations,
perfumery, health foods medicines and beverages. India, a traditional
exporter of cardamom to the Middle East countries where it goes mostly into
the preparation of 'Gahwa' - a strong cardamom - coffee concoction without
which no day is complete or no hospitality hearty for an Arab. Indian
cardamom enjoys a premium preference in the Middle East, Japanese and
Russians who relish it for its distinct enriching properties.
Origin and Distribution

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Cultivation of cardamom is mostly concentrated in the ever green forests of
Western Ghats in South India. Besides India, cardamom is grown as a
commercial crop in Guatemala and on small scale in Tanzania, Sri Lanka, El
Salvador, Vietnam, Laos, Thailand, Cambodia, Honduras, and Papua & New
Guinea. The optimum altitudinal range on growing cardamom is 600 to 1500
mtr. The cardamom growing regions of South India lies within 8 - 30 degree
N latitudes and 75-78 degree longitudes.
Uses
The major use is for the preparation of ‘gahwa’ – a strong cardamom coffee
concoction which is a symbol for hospitality among Arabs. Apart from this
cardamom is widely used as a flavouring material in whole and ground form.
In Asia, it can add a lingering sparkle to every kind of dishes both traditional
and modern. In Scandinavian countries it is used in baked goods and
confectionaries. In Europe and North America it is an ingredient in curry
powder and in some sausages products.
Cardamom oil and has applications in flavouring processed foods, cordials,
and liquors and in perfumery and in Ayurvedic medicines.

Cardamom (Small)
During 2008-09, India exported 750 MT of Cardamom Small valued
Rs.47.27 crores as against 500 MT valued Rs.24.75 crores in 2007-08,
registering an increase of 50% in volume and 91% in value. Saudi
Arabia accounts for 520 MT (69%) of our exports followed by Malaysia
(30MT), Japan (25 MT) and UAE (20 MT). Our exports mainly consist
of high quality grades like
AGEB and AGB to Middle East markets especially to Saudi Arabia.
The production of Cardamom Small during 2008-09 was 11,000 MT;
higher than last year’s production of 9450 MT. The better production
and the low availability from Guatemala, the major competitor of
Cardamom Small has resulted in the increase of our exports during
2008-09.

Cardamom (Large)
During the year India has exported 1875 MT valued Rs.22.81 crores as
against 1325 MT
valued Rs.15.00 crores in 2007-08. Pakistan is the major buyer of Indian
large cardamom
accounting for 1485 MT (79%) in 2008-09 followed by UAE (160 MT)
and UK (90 MT). India and Nepal are the major producers of
Cardamom (Large). On an average we import about 5000 MT of

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cardamom (large) from Nepal to meet the strong domestic demand.
During 2008-09, Indian production was 4450 MT; little less than last
year’s production of 4900 MT.

Despite the global economic recession, spices export from India has
continued its upward
trend and has crossed Rs.5000 crores mark for the first time during the year
2008-09. The export
during 2008-09 has been 470,520 tonnes valued Rs.5300.25 crores (US
$1168.40 million)
against 444,250 tonnes valued
Rs.4435.50 crores (US $1101.80).
The spices export during 2008-09 has also exceeded the target in terms of
volume, rupee
value and dollar terms of value. Against the export target of 4,25,000
tonnes valued Rs.4,350.00
crores (US$ 1025.00) for the year 2008-09, the achievement of 470,520
tonnes valued
Rs.5,300.25 crores (US$ 1168.40 million) is 111% in quantity, 122% in
rupee value and 114% in
dollar terms of value.
Indian spices and
spice products reached more than135 countries in world. The leading among
them are USA
(21%), Malaysia (7%), UAE (6%), China (6%) and UK (5%).

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 FREE TRADE EXPORT.
 IF THE IMPORTING COUNTRIES NEED TO HAVE THE
CERTIFICATES OF NO DISEASE DERIVED FROM
REMAINING CHEMICALS ON PLANTS OR THOSE WITH
NO PLANT PEST, EXPORTERS MUST REQUEST THE
CERTIFICATE.
 TO REQUEST THE CERTIFICATE FOR THE QUALITY OF
FOOD OR EXPORTED AGRICULTURAL PRODUCTS(ONLY
FOR THE EXPORTERS WHO NEED THEM).

 THE VARIOUS TYPES OF CERTIFICATES ARE:

 HEALTH CERTIFICATE
 SANITARY CERTIFICATE
 MYCOTOXIN CERTIFICATES
 HEAVY METAL CERTIFICATE
 MERCURY CERTIFICATE
 ANALYSIS CERTIFICATE.

 CUSTOMS FORMALITIES ARE ALSO REQUIRED TO BE

FULFILLED.

 FORM P.K.9
 INVOICE
 LETTER OF CREDIT
 BILL OF LADING
 PACKING LIST

15
 EXPORT LICENCE, CERTIFICATE, INVOICE &LAISSEZ-
PASSERS OF THE RELEVANT GOVT. AGENCIES.
 REPORT OF INSPECTION &INSTALLATION OF
CONTAINERS.

16
17
THERE ARE TWO TYPES OF PROCESS PERIOD:
 (A)-GENERAL CASE:
 PRODUCT ANALYSIS & INSURING A PHYTOSANITARY
CERTIFICATE IN 1 HOUR.
 PRODUCT ANALYSIS PEST CONTROL & ISSUING A
PHYTOSANITARY CERTIFICATE IN 3-5 DAYS.
 (B)-SPECIAL CASE:
 SPECIFY A TYPE OF PEST CONTROL DURING GROWING
IN A PLANT FIELD.
 LABORATORY INSPECTION IN 5-17 DAYS.

MAJOR IMPORTERS-
 United States (21%)
 Malaysia (7%)
 UAE (6%)
 UK (5%)
COMPETITORS-
 INDONESIA
 VIETNAM

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Exports have dropped by 23 per cent in volume and 10 per cent in value
during April and May of this fiscal, as compared to last year.

The export figure this April and May were 82,435 tonnes, valued at Rs 824.7
crore ($167.4 million) against 106,375 tonnes valued at Rs 920.6 crore
($224 million) in the same months of 2008-09. All major spieces have seen a
substantial drop in exports in April and May. Some have seen major drop, as
with black pepper, 3,000 tonnes valued at Rs 47.5 cr, against 5,580 tonnes,
worth Rs 92 cr last year this time.
A big fall in US imports of black pepper, at 950 tonnes, compared to 2,000
tonnes in April-May last year was the main reason.
Export of chilli, the largest item in the export basket, has decreased by 48
per cent in volume and 34 per cent in value in these two months, 26,000
tonnes worth Rs 159.7 crore against 50,275 tonnes worth Rs 242 cr of
exports in April-May 2008. The Spices Board says the decline is mainly due
to the absence of Pakistan from the market. In April–May of 2008-09,
Pakistan had imported 20,000 tonnes of chilli from India.
Another setback is in the value-added segments, mainly in spice oils. In this
segment, India has more than 80 per cent of the global market. During these
two months, export of spice oils has dropped to 1,075 tonnes valued at Rs
111.8 cr, against 1,450 tonnes valued at Rs 136.9 cr last year.
In 2008-09, spice oils recorded an all-time high in volume and value terms;
export was 6,850 tonnes valued at Rs 720.5 cr against 6,600 tonnes valued at
Rs 563 cr in the previous fiscal, an increase of 28 per cent in value and 4 per
cent in volume.
Curry powder/paste recorded nil growth in April and May, at 2,350 tonnes
valued at Rs 283 cr. The export of curry powder during 2008-09 had, again,
been an all-time high in terms of quantity and value.
Turmeric and coriander have recorded an increase, while nutmeg and mace
have seen a sharp one.Around 9,250 tonnes of coriander valued at Rs 475 cr,
up by 22 per cent and 3 per cent, respectively, in volume and value, were
shipped in these two months.
Turmeric recorded a 17 per cent increase in quantity and 82 per cent in
value, at 10,500 tonnes valued at Rs 64.5 cr against 9,010 tonnes valued at
Rs 35.4 cr. The sharpest increase of 592 per cent in volume and 459 per cent
in value was recorded in nutmeg and mace, at 450 tonnes valued at Rs 11.4
crore, against 65 tonnes valued at Rs 2 cr in April–May 2008-09.

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Board's initiatives for export development

Spices exports have registered substantial growth during the last one-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 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 MLN US $ 1101.80 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.

With the support of the Spices Board, exporters have established

adequate infrastructure for improving quality on a sustained basis. Quality
improvement and technological upgradation are taken up by exporters as an
on-going programme. These developments are in tune with the changing
levels of market acceptance. Other areas focused upon by the Board are
export promotion in identified markets, interaction with policy makers in the
importing countries, development of new end uses, farm level training for
farmers etc.

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 India's share in world trade of spices 2007-08

The United States continues to be the largest importer from India (21 per
cent), followed byMalaysia (seven per cent), UAE (six per cent) and UK
(five per cent).

.Kurien-The chairman of SPICES BOARD said in the export basket of

spices and spice products, spice oils and oleoresins, including mint products
such as mint oils, menthol crystals, and menthol powder contributed 40 per
cent of the total export earnings.

“This year, a large Indonesian speculator of coffee and pepper failed and his
stocks are being sold by the banks to importers for quick disposal. Some
overseas brokers said “we do not expect large quantities of SPICES to be
imported into the US during Mar/Apr/May, certainly not the 9,000 tonnes
imported between March and June 2008. We believe the quantities being
offered are between 2,000-3,000 tonnes maximum and are not being sold in
any large quantities.”

Buyers already long at high prices and poor economic prospects for the
coming months will wind down their inventories and then buy as needed
from either Vietnam, India or Indonesia whichever origin is most attractive,
they said.

“Most buyers are covered through March only so we do expect a pick up of

demand during end Feb/March but as we said before buyers are cautious at
best.”

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IPC REPORT

An IPC report said that the black pepper market continued to be quiet and
in India the market showed a downward trend and price eased although
limited arrival from current crop. The situation was due to limited overseas
demand. Average futures prices at the commodity exchange declined by
around 5-6 per cent.

On Feb 19, however, prices showed some improvement. In Vietnam, the

market was also quiet.

Spice exports from India were valued at over $11 billion — an all-time high
— in 2008-09.

About 470,520 tonnes were exported and in dollar terms the value fetched
was $11.68 billion (Rs 5,300.25 crore), Spices Board Chairman VJ
Kurien said.

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CONCLUSION

The exports of spices thus offer tremendous export potential. For achieving
this, there is need to push up production through advanced technologies such
as tissue culture and biotechnology, gearing up private entrepreneurs to start
processing industries for extraction of essential oils, development of
storage and warehousing, transport and market infrastructure in the
country, close coordination among various organizations related with
exports of spices and creating greater awareness about the benefits of using
byproducts of spices viz. spices oils, oleoresins, and natural colours.
Besides, special efforts need to be made to push up consumption of aromatic
spices in the overseas markets.

Despite an all-time high performance in 2008-09, the current financial year

has commenced with a pessimistic note on the export of major spices.

India had crossed a milestone in the export of spices in 2008-09, as total

earnings crossed the Rs 5,000 crore mark for the first time. Exports for the
year were 470,520 tonnes, up by 6 per cent and valued at Rs 5,300 crore, up
by 19 per cent.

During the previous financial year, 444,250 tonnes valued at $11.01 billion
(Rs 4,435.50 crore) were exported.

The spice exports were at an all-time high both in terms of volume and
value. Compared with last year, the export had shown an increase of 19 per
cent in rupee value and six per cent in dollar terms.

The increase in quantity was also six per cent. The export had also exceeded
the target in terms of volume, rupee value and dollar terms of value. The
export target for 2008-09 was 4,25,000 tonnes valued at Rs 4,350 crore
($1,025 million) for the year 2008-09.

However, anticipating a deceleration in exports due to recession, Kurien said

the board was projecting exports worth Rs 4,500 crore only in 2009-10.

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Already there has been a dip in volume of 20-25 per cent to all countries, he
said adding the 6-7 months inventory level has been reduced to a month
now. The exports to the European Union have also dwindled to a large
extent.

If the assessment of the overseas reports turns out to be a reality and Indian
prices remains competitive, orders could come to India in the near future as
the buyers who have been reluctant to buy due to the current economic crisis
and the comparatively high prices at various origins might have to cover to
meet their immediate future demands.

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