The Hindu Business Line : Spices exports cross $1-billion mark

Kochi, May 22 India’s spices export has crossed $1-billion mark in 2007-08 by registering an increase of 19 per cent in volume, 24 per cent in rupee value and 39 per cent in dollar terms of value.

During the year, a total of 4,44,250 tonnes of spices and spice products valued at Rs 4,435.50 crore ($101.80 million) were exported from the country as against 3,73,750 tonnes valued at Rs 3,575.75 crore ($792.95 million) in the previous year.

Target exceeded

Mr V.J. Kurien, Chairman, Spices Board, said at a press meet that the spices export in 2007-08 has also far exceeded the target fixed for the year both in volume and value terms. Against the target of 3.8 lakh tonnes valued at Rs 3,600 crore ($875 million) fixed for the year, the achievement has been 117 per cent in volume, 123 per cent in rupee value and 126 per cent in dollar value.

“The Board has fixed an export target of $1.2 billion for the year 2008-09 and we are very optimistic of sustaining the growth”, he added.

Growth in volume, value

During the year 2007-08, the export of pepper, chilli, seed spices such as coriander, cumin, fennel, fenugreek and other seeds has shown substantial growth both in volume and value as compared to last year. The export of value added products such as curry powder, mint products and spice oils and oleoresins have also shown impressive growth during the period.

However, export of some of the items such as cardamom (large) ginger, turmeric, celery, garlic and nutmeg and mace fell short of last year’s performance.

In the case of cardamom (small), the export value has gone up by 11 per cent in spite of a decrease of 23 per cent because of higher unit value realisation.

For vanilla, because of competitive price advantage, the export volume has increased substantially by 60 per cent in 2007-08. However, the value has decreased by 11 per cent due to low unit value when compared to last year. The export of chilli has reached an all-time high of 2.09 lakh tonnes valued at Rs 1,097.50 crore accounting for a share of 47 per cent in volume and 25 per cent in value of the total export of spices and spice products from the country.

The stringent quality measures implemented by the Spices Board have made Indian chilli more acceptable in the international markets. Moreover, the lower output by the major producers such as China, Pakistan has also helped India to achieve the record performance, Mr Kurien said adding, that the Board had also suggested e-auction in chilli at Guntur to fetch better prices for farmers.

The export of ginger has declined both in terms of quantity and value as compared to 2006-07. The decline has been 11 per cent in volume and 30 per cent in value.

The domestic price of ginger, which was in the range of Rs 45-65 a kg in 2006-07, has gone up to Rs 80 per kg in March 2008. The higher prices made the Indian ginger uncompetitive in the international market.

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