Export Import News - Spices Export - Lower Volume Growth, Higher in Value

Spices Export - Lower Volume Growth, Higher in Value

Spices export during the first eight months of the current fiscal have stagnated in terms of volume, but are up 29 per cent in value terms

During first eight months of 2006 (Apr to Nov) - total value of spices export from India has been Rs. 2040 crores, registering a growth of 29 percent over corresponding figure of last year. However, in volume terms - it has registered just about 1 percent growth to 2,24,357 Metric Tonnes (MT)

It should be noted here that Indian spices received high prices this season not because of better quality, but simply because of tightening global supplies and lower export surplus in competing origins.

Among spices, Indian pepper, cardamom and chilli have enjoyed excellent demand as world production of these commodities fell short of market expectations.

Strong demand for Indian black pepper in New York fetched a premium price of $2,911 per tonne end-December, up about 70 per cent from $1,720 per tonne same period last year.

Making the most of the robust demand, traders have already exported 15,000 tonnes out of the Government approved export limit of 20,000 tonnes for the financial year 2007 and another 4,000 tonnes are ready for exports before March.

World production of pepper is expected to fall to 2.65 lakh tonnes this year as against 2.95 lakh tonnes last year. This shortfall of 30,000 MT pepper is likely to fuel export growth of Indian pepper in current year.

January 4' 2007