Export Import News - Healthy Growth in Spices exports

Healthy Growth in Spices Exports

Spices export saw healthy growth during April-June' 2007 period when exports grew by by 25 per cent in volume terms and 36 per cent in value terms. Total volume of spices export during the period was 1,11,420 tonnes valued at Rs 967.30 crore ($156.63 million). Thus, indistry has been able to achieve significant part of the target set for the year with the first three months attributing to 29 per cent of the total volume set at 3,80,000 tonnes and 27 per cent of the value at Rs 3,600 crore ($875 million).

Spices like pepper, cardamom (large), chilli, coriander, fennel, fenugreek, nutmeg and mace have performed better than last year. Among the value added spices, curry powder, and spice oils and oleoresins did better.

Even though there was a marginal decline in exported quantity of mint products, value realised has shown significant improvement. Performance of some of the items like cardamom (small), ginger, cumin, celery, garlic and vanilla fell short of last year’s performance, a press release from Spices Board said.

Among the major spices, pepper export was up 137 per cent in value at Rs 97.26 crore (Rs 41 crore). The f.o.b unit value has increased to Rs 139 per kg from Rs 82.

Indian pepper has become more competitive in the international market especially during May and June 2007. The report on the international supply situation shows that the current trend in pepper export from India is likely to continue in the next few months.

During the quarter, the country exported 52,000 tonnes (23,715 tonnes) tonnes of chilli valued Rs 288.50 crore (Rs 104.76 crore). The demand from the traditional buyers like Malaysia and Sri Lanka are on the rise. Currently, India is the main source of red chilli in the international market.

After the lean production 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. It is reported that the stocks held at different levels are minimal and hence any significant decline in the Chinese crop will put pressure on chilli prices in the next few months.

Among the seed spices, coriander, fennel and fenugreek performed better than last year. Coriander exports surged to 6,100 tonnes (4,900 tonnes) valued at Rs 22.48 crore (Rs 17.98 crore). Reports indicate that East European countries like Romania and Bulgaria, where coriander is produced, have suffered drought condition and this may have some impact on their crop.

Fennel exports grew to 2,100 tonnes (1,500 tonnes) valued Rs 11.99 crore (Rs 8.95 crore). Fenugreek exports increased to 4,850 tonnes (1,940 tonnes) valued Rs 12.63 crore (Rs 5.96 crore).

In the case of cumin seed there was a decline from 8,190 tonnes to 4,000 tonnes. However, it is expected that the export of cumin is likely to pick up in the next few months, as there are some reports, which indicates that the crop in Syria has been damaged considerably due to rain. Against their normal crop of 25,000 to 30,000 tonnes, the current expectation is between 10,000 tonnes and 15,000 tonnes.

Export of valued-added spices like curry powder, and spice oils and oleoresins have increased six and nine per cent respectively in terms of quantity. As much as 2,625 tonnes of curry powder valued at Rs 24.17 crore were exported from India as against 2,465 tonnes valued at Rs 20.05 crore last year.

It is significant to note that the unit value has increased from Rs 81 per kg to Rs 92 per kg. In the case of oils and oleoresins the quantity exported has increased from 1,445 tonnes to 1,575 tonnes and value realisation from Rs 121 crore to Rs 127 crore.

August 11' 2007