1

Export prospects of spices

I
etc. are widely used.

from India
ndia is a land of spices. Indian popularly spices known are for

their flavour both in the domestic and

international market. They are not only indispensable for the dietary pattern but

are also known for their medicinal and curative effects since time immemorial. Each state in India has been bestowed with some spices. With the growing awareness of ill effects of synthetic chemicals, drugs and medicines, people are now switching towards traditional system of medicines where spices like ginger, turmeric, chillies,

The diverse agro climatic conditions prevailing in different parts of the country offer an enormous scope for cultivation of a wide variety of spices.

The country today produces a wide range of spices. These can broadly be divided into five categories viz. (i) Major Spices: black pepper, cardamoms (small & large), chillies, ginger, and turmeric, (ii) Seed Spices: coriander, celery, fennel, fenugreek, dill, aniseed, caraway, mustard, poppy seed, parsley and ajowan, (iii) Tree spices: clove, nutmeg and mace, cinnamon, tejpat, kokm, allspice, cambodge, tamarind, cassia, curry leaf, asafetida, and pomegranate; (iv) Herbal spices: thyme, marjoram, oregano, savory, basil, rosemary, horse radish, tarragon, hyssop and lovage; and (v) Misc. spices: garlic, saffron, vanilla, juniper berry, pepper long, greater galanga, curry powder, spice oils, oleoresins and mixtures where predominant. spice content is

2
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.

For

getting

up-to-date

information

about

export

of

spices,

its

websites: can be

www.indianspices.com/ accessed.

mail@indianspices.com/spicesboard@vsnl.com

WORLD TRADE

World Imports: World imports of spices, as may be seen from Table 1, declined by
4.65 per cent in 2001 over the previous year when the same reached a level of US$2,891.6 million as against US$3,032.6 million. USA continues to be the largest importing country. However, its imports during the period registered a decline of 6.11 per cent. The other major countries showing a similar trend include Netherlands (22.03%), Germany (12.53%), Saudi Arabia (5.87%), France (2.83%), Japan (1.90%), UAE (1.06%), and the UK (0.63%). On the other, the countries witnessing a rising trend during the period include Mexico (18.71%), Spain (12.73%), and Singapore.

TABLE 1 World imports of spices by major countries in the years 2000 and 2001
(SITC Code: 075) (US$ million) Country 2000 2001 %change in 2001 over 2000 United States UAE Japan 548.1 291.9 200.1 514.6 295.0 196.3 (-)6.11 (-)1.06 (-)1.90

3
Germany Singapore Netherlands France UK Saudi Arabia Spain Mexico WORLD TOTAL 180.3 185.2 145.7 102.6 95.6 98.8 80.9 62.0 3,032.6 157.7 19.4.1 113.6 99.7 95.0 93.0 91.2 73.6 2,891.6 (-)12.53 4.81 (-)22.03 (-)2.83 (-)0.63 (-)5.87 12.73 18.71 (-)4.65

Source: UN, Yearbook of International Trade Statistics 2001, Geneva.

World Exports: World exports, as may be seen from Table 2, registered a decline
of 9.58 per cent in 2001 over the previous year, when the same touched a figure of US$ 2,439.7 million as against US$2,698.3 million. Further analysis show that India continues to be the largest exporting country during the period. Its exports showed a marginal growth of 1.99 per cent when the same reached a level of US$251.9 million as against 251.4 million. The other countries witnessing a similar trend during the period include China (24.67%), Spain (13.94%), Brazil (10.82%), USA (9.47%), Germany (7.37%), Vietnam (3.02%), and UAE (0.62%). On the contrary, the

countries showing a negative growth during the period included Malaysia (44.59%), Indonesia (44.52%), Singapore (39.54%), Sri Lanka (32.52%), and Netherlands (14.16%).

TABLE 2 World exports of spices by major countries in the years 2000 and 2001
(SITC Code: 075) (US$ million) Country 2000 2001 %change in 2001 over 2000 India China Vietnam Indonesia 251.4 152.4 182.4 317.4 251.9 190.0 187.9 176.1 1.99 24.67 3.02 (-)44.52

4
Singapore UAE Netherlands Guatemala Brazil Spain Germany Sri Lanka USA Malaysia WORLD TOTAL 290.1 130.0 115.8 80.7 84.1 77.5 70.6 98.1 71.8 103.6 2,698.3 175.4 130.8 99.4 97.1 93.2 88.3 75.8 66.3 65.0 57.4 2,439.7 (-)39.54 0.62 (-)14.16 20.32 10.82 13.94 7.37 (-)32.52 9.47 (-)44.59 (-)9.58

Source: UN, Yearbook of International Trade Statistics 2001, Geneva.

Indian scenario: According to All India Spices Exporters Forum, India produces
2.3 to 3.00 million tonnes of spices of different varieties worth US$3 billion. Andhra Pradesh alone commands 47 per cent of chilli production. About 90 per cent of the production is absorbed by the huge domestic market. Detailed data on state wise area, production and spices grown in the years 2001-02 and 2002-03 appear at Annexure I.

Indias Exports
Indias Exports-Variety wise: According to the latest data released by the Spices
Board, Indias exports of spices during the 11-month period (April-February 2004-05) went up by 14.06 per cent over the corresponding period of the previous year. The exports during the period reached a figure of Rs. 1,866.29 crore as against 1,636.24 crore. A glance at the variety-wise export trend shows that Chilli continues to be largest item of export. Its exports increased significantly to Rs. 450.96 crore as against Rs. 277.81 crore, registering a steep growth of 62.33 per cent. The other spices showing a similar trend include ginger (160.25%), Cumin (106.95%), Fenugreek (64.81%), Fennel (45.18%), other seeds (38.14%), turmeric (31.48%), spices oils and oleoresins (29.50%), and curry powder (1.64%). Celery, however, showed a marginal decline of 0.16 per cent when its exports reached a level of Rs. 12.41 crore as against Rs. 12.43 crore during the period.

5 TABLE 3 Variety wise Indias exports of spices in the years 2002-03 and 2003-04
(Rs. Crore) Variety 2003-04 (April-Feb) 2004-05 (April-Feb) %change 2004-05 2003-04 Chilli Spices oils/oleoresins Turmeric Cumin Coriander Curry powder etc. Ginger Fenugreek Other seeds Fennel Celery TOTAL INDIA) 107.80 46.06 58.71 56.11 19.75 14.92 17.75 16.18 1243 (ALL 1,636.24 141.74 95.32 78.87 57.03 51.40 24.59 24.52 23.49 12.41 1,866.29 31.48 106.95 34.34 1.64 160.25 64.81 38.14 45.18 (-)0.16 14.06 277.81 318.26 450.96 412.14 62.33 29.50 in over

Source: Spices Board, Kochi (Kerala)

Indias Export-Country wise: Indias Exports of spices as may be seen from

Table 4 declined to Rs. 1525.60 crore, in 2003-04 against to Rs. 1, 655.49 crore in the previous year, showing a negative growth of 7.85 per cent. A glance at the country wise exports levels that USA continues to be the largest market for Indian spices. However 2003-04, exports to USA showed a decline of 13.79 per cent as ones the previous year. The countries showing a similar trend include France (26.82%), Singapore (24.45%), Germany (23.49%), Netherland (21.19%), Japan (21.16%), and China P. Rep. (4.99%). On the contrary, the countries showing a positive growth during the period include Nepal (56.77%), Malaysia (38.18%), UAE (35%), Bangladesh (25.25%), Saudi Arabia (5.43%) and South Africa (4.53%)

6 TABLE 4 Indias exports of spices to major markets in 2002-03 & 2003-04

(Rs. crore) USA UK UAE Malaysia Japan Nepal Bangladesh Germany Saudi Arabia Singapore France Canada Netherland South Africa China P. Rep. TOTAL INDIA) 380.03 118.67 68.20 62.16 101.19 39.97 49.90 79.85 49.53 46.13 45.90 47.42 36.06 26.02 26.83 (ALL 1,655.49 327.64 92.29 92.07 85.89 79.78 62.66 62.50 61.09 52.22 34.85 33.59 32.74 28.42 27.20 25.49 1,525.60 (-)13.79 (-)22.23 35.00 38.18 (-)21.16 56.77 25.25 (-)23.49 5.43 (-)24.45 (-)26.82 (-)9.47 (-)21.19 4.53 (-)4.99 (-)7.85

Source: DGCI&S, Foreign Trade Statistics of Principal Commodities and Countries, 2004, Kolkata. March

Recent Developments
New Norms for

Chilli Exports: The

Spices Board has two announced

important changes to the norms applicable

7
for the export of chillies and chilli products. As per these norms, exports of chilly powder and chilli products can be made only with the certificate to be obtained from the Spices Board indicating that the consignment is free from Sudan I to IV. The other change relates to the presence of aflatoxin in chilli exports. No consignment of chillies. Chilli products and other food products containing chilli products in

whatsoever form shall be exported unless it carries a certificate issued by the Spices Board to the effect that the consignment does not contain aflatoxin beyond acceptable levels. The certificate has to specially confirm that the consignment is fit for export to the intended destination. This rule has already taken effect in respect of exports to the EU, the US and West Asia. For other destinations, it will come into effect from April 1, 2005.

Launching of "Flavourit" - a new brand: To promote exports of spices in the

international market, the Spices Board has introduced the flavourit brand of spices to boost high quality premium Indian spices and to re-establish their identity on 5 March 2005. The flavored is set to provide a marketing channel for the growers of cardamom, vanilla and pepper and more particularly to those who have taken up organic production of splices with the encouragement of the Board.

Ban on Pepper Imports: The Ministry of Commerce & Industry, Government of

India has imposed a ban on the import of pepper under the advance licence scheme.

EU Norms for Exports of Turmeric: After chilli, the European Union Standing
Committee on Food Chain and Animal Health has said that turmeric exported to the EU countries for human consumption should be free of carcinogenic Sudan dye. Consignments of turmeric imported into the EU

countries are required to be certified as free from

Sudan dyes I to IV based on analysis at the point of export and endorsed. The Spices Board has asked

exporters of turmeric to comply with the

requirement strictly. It is now mandatory for exporters to send samples for checking at the Boards laboratory to make sure that the consignments are free of Sudan I to IV.

Review of Spices Development Plans in the North East: The Parliamentary

Standing Committee on Commerce recently visited the North Eastern region to review spices development programmes.

Quality Evaluating & Upgradation Laboratory: The Spices Board has set up
the Quality Evaluation & Upgradation Certificate of Registration by the British Standards Institution for the Quality Management System adopted by the laboratory as per the requirement of ISO 9004. The Spices Board has evolved two major concepts for quality improvement. One is the introduction of Indian spices logo, the other is the Spices House Certificate. To improve the quality of spices at the farmers, traders and exporters level, the Board organizes a series of quality upgradation programmes.

Participation in International Fairs: The Spices Board participated in four major

international food fairs in March 2005. The fairs were held at Japan, China, South Korea and the UK.

Export Strategy: The exports of spices could be accelerated significantly from the
country by increasing 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 by products of spices viz. spices oils, oleoaresins, and natural colours.

ANNEXURE I State wise area & production of spices in India in 2001-02 & 2002-03
Area: 000 hectates Production: 000 Tonnes State 2001-02 Area Production 2002-03 Area Production Major spices grown

9
Andaman & 1.26 Nicobar Andhra Pradesh 354.92 887.61 333.44 722.79 1.73 1.42 1.85 Pepper, chilli, ginger,

clove, nutmeg, cinnamon Chilli, Ginger, turmeric, coriander, mustard seed. Garlic and tamarind

Arunachal Pradesh Assam Bihar

6.72

42.24

6.59

36.65

Chilli, turmeric

Ginger

and

26.54 107.12

17.81 89.74

26.95 99.85

18.10 68.70

Chilli and turmeric Chilli, ginger, turmeric, coriander, mustard seed and garlic

Chhattisgar h Gujarat

Na

Na

56.85

23.92

Chilli, ginger, turmeric, mustard seed and garlic

473.54

505.33

416.95

366.81

Chilli, ginger, turmeric, coriander, cumin, fennel, fenugreek, ajwanseed,

dill seed, mustard seed and garlic Himachal Pradesh Jammu Kashmir Karnataka 282.88 301.56 242.51 217.79 & 4.01 1.27 4.31 1.38 4.01 1.27 4.31 1.38 Chilli, ginger, turmeric, coriander and garlic Chilli, ginger, turmeric, garlic and saffron Pepper, (small), turmeric, cardamom chilli, ginger,

coriander, garlic,

mustard seed,

tamarind, clove, nutmeg, cinnamon and sweet flag Kerala 288.09 151.60 292.22 158.30 Pepper, (small), cardamom chilli, ginger,

turmeric, garlic, tamarind, clove, cinnamon Maharashtr a Meghalaya 11.75 56.33 17.46 71.49 121.31 104.29 112.55 105.97 Chilli, ginger, turmeric nutmeg and

and garlic Chilli, ginger, turmeric, mustard seed and tejpat

10
Mizoram 9.12 51.58 6.83 35.30 Chilli, ginger, turmeric

and garlic

State

2001-02 Area Product ion

2002-03 Area Produ ction 14.00 9.41 Chilli, ginger, turmeric Major spices grown

Manipur

10.49

8.47

and mustard seed Madhya Pradesh 171.46 152.90 502.71 366.17 Chilli, ginger, turmeric, coriander, mustard seed and garlic Nagaland na na 3.52 24.22 Chilli,, ginger, turmeric and garlic Orissa 253.81 223.95 235.76 216.48 Chilli, ginger, turmeric, coriander, mustard seed and garlic Punjab Rajasthan 10.86 2,530.03 29.74 2,528.34 10.96 17,237. 90 30.25 520.99 Chilli, clery and garlic Chilli, ginger, turmeric, coriander, cumin, fennel, fenugreek, ajwanseed,

dill seed, mustard seed, popy seed and garlic Sikkam 32.24 30.46 32.11 29.57 Cardamom (large),

ginger and turmeric Tamil Nadu 159.28 250.35 144.63 191.79 Pepper, (small), turmeric, mustard cardamom chilli, ginger,

coriander, seed, garlic,

tamarind and clove. Tripura 4.45 17.45 4.46 17.61 Chilli, turmeric Uttar Pradesh 42.44 100.62 49.34 132.02 Chilli, ginger, turmeric, coriander, fennel, ginger and

fenugreek and garlic Uttaranchal 5.89 33.22 5.91 33.43 Chilli, ginger, turmeric, coriander, fenugreek and garlic

11
West Bengal Source: Spices Board, Kochi (Kerala) 86.39 94.99 86.08 104.38 Cardamom (large), chilli, ginger and turmeric

ANNEXURE II Detailed data on Indias exports of spices in 2002-03 & 2003-04

(Rs. crore) HS Code Item 2002-03 2003-04 % change in over

2003-04 2002-03 09.04.2010 (09.04.2001) 09.04.2020 (09.04.2002) 09.04.1130 ((09.0401103) 09.10.3030 (09.10.3002) 09.10.3010 (09.10.3004) 09.10.99.29 Other powder of other n.e.s. 09.09.2010 (09.09.2000) 09.04.1200 (09.04.1200) 09.10.3020 (09.10.3003) 09.10.9100 (09.10.5001) Mixture of two or 39.70 more products of different headings 09.10.9912 Fenugreek seed 22.96 19.26 (-)16.11 24.13 (-)39.22 Coriander seed quality Crushed ground pepper Turmeric dry 21.70 29.04 33.82 or 24.75 32.68 32.04 of 41.69 40.48 (-)2.90 spices 42.00 Turmeric fresh 14.69 42.84 191.63 Black garbled Turmeric powder 67.04 52.31 (-)21.97 pepper 102.00 53.25 (-)47.79 Chilly powder 113.14 105.56 (-)6.70 Chilly 176.13 212.20 20.48

12
(09.10.9002) 09.09.2090 (N.A.) 09.10.9919 (n.a.) 09.08.3010 09.083003) Other coriander seeds Other n.e.s. Cardamoms small green 09.10.9911 (09.10.9901) 09.09.5011 (09.09.5001) HS Code Fennel of seek 16.72 quality Item 2002-03 2003-04 % change in over 15.06 (-)9.93 Celery seed 16.76 15.08 (-)10.02 coorg 0.08 5.45 6712.50 spices 18.73 18.91 -

2003-04 2002-03 09.09.3011 (09.09.3001) 09.05.0010 (09.05.0001) 09.10.9990 (n.a.) 09.08.3020 (09.08.3002) Other n.e.s. Cardamoms small green 09.08.1020 (09.08.1002) 09.09.3021 (09.09.3002) Nutmeg not in 18.02 shell Cumin than other 54.25 black of 11.63 (-)78.56 11.74 (-)34.85 alleppey 18.22 11.80 (-)35.24 spices 12.47 Cumin black of 18.43 seed quality Vanilla bean 1.59 12.75 701.89 14.33 (-)22.25

seed quality 09.08.1010 (09.08.1001) 09.04.1100 (09.04.1101) 09.09.3029 (n.a.) 09.10.9922 (09.10.9913) Other seeds Cumin powder 7.20 7.64 6.11 cumin 8.70 Nutmeg not in 9.36 shell Pepper long 10.30 8.89 (-)13.69 9.81 4.80

13
09.10.9921 (09.10.9912) 09.10.1020 (09.10.1002) 09.10.3090 (n.a.) 09.09.3019 (n.a.) 09.04.1150 (09.04.1105) 09.10.9939 (09.10.9939) 09.08.303 (09.08.3003 Other cumin 6.39 Ginger unbleached Other turmeric 6.93 dried 6.34 7.07 11.51 Cassia powder 17.16 7.13 (-)58.45

black seeds Dehydrated green pepper Spices n.e.s. Cardamoms small green coorg 0.08 5.45 6712.50 husk, 7.56 5.57 (-)26.32 6.67 6.36 (-)4.65

09.04.1140 (09.04.1104)

Black

pepper 3.10

5.42

74.84

ungarbled

09.04.1120 (09.04.1102) 09.10.1040 (09.10.1004) 09.09.5019 (n.a.) HS Code

Light pepper

black 12.50

4.84

(-)61.28

Ginger powder

5.59

4.67

(-)16.46

Other seeds Item

fennel -

4.09

2002-03

2003-04

change

in over

2003-04 2002-03 09.10.9914 (09.10.9904) 09.10.1010 (09.10.1001) 09.10.9924 (09.10.9915) Fenugreek powder TOTAL INDIA) (ALL 1,655.49 1,525.60 (-)7.85 2.52 2.17 13.88 Ginger fresh 7.23 3.88 (-)46.33 Ajwan seed 2.97 4.07 37.04

Note: Figures within brackets indicate HS Codes being in use in the year 2002-03. Source: DGCI&S, Monthly Statistics of Indias Foreign Trade

14
Exports and Re-Export March 2003 & 2004, Kolkata

ANNEXURE III Indias exports of major spices to principal markets in 2002-03 & 2003-04
(Rs. crore) HS Code Item/country 2002-03 2003-04 %change in 2003-04 over 200203 Chilly 09.04.2010 (09.042001) Sri Lanka Bangladsesh Malaysia USA Nepal Indonesia UAE Italy Total others) 67.54 31.81 9.86 28.08 6.55 7.55 2.64 1.86 (incl. 176.13 77.90 40.09 35.11 17.59 12.50 5.35 2.31 2.23 212.20 15.34 26.03 256.09 (-)37.36 90.84 (-)29.14 (-)12.50 19.89 20.48

09.04.2020 (09.04.2002)

Chilly powder

USA Bangladesh UK UAE South Africa Saudi Arabia Canada Sri Lanka Italy

46.61 10.94 10.32 8.52 2.79 2.41 3.06 2.05 2.45

40.33 9.57 9.25 8.05 5.16 3.29 2.51 2.37 2.35

(-)13.47 (-)12.52 (-)10.37 (-)5.52 84.95 36.51 (-)17.97 15.61 (-)4.08)

15
Total others) (incl. 113.14 105.56 (-)6.70

09.04.1130

Black

pepper

(09.04.1103) garbled USA Italy Canada Japan Germany Sweden Australia HS Code Item/country 43.35 9.62 13.54 2.38 2.49 2.09 1.19 2002-03 15.32 5.53 5.09 4.49 2.87 2.52 1.36 2003-04 (-)64.66 (-)42.52 (-)62.41 88.66 15.26 20.57 14.29 %change in 2003-04 over 200203 UK USA Total others) 3.56 43.35 (incl. 102.00 3.29 15.32 53.35 (-)7.58 (-)64.66 (-)47.70

09.10.3030 (09,103002)

Turmeric powder USA UK Netherland Japan Germany UAE Malaysia South Africa Morocco Saudi Arabia Canada Australia Bangladesh Total 11.98 6.66 6.33 4.27 3.35 6.01 2.70 2.78 0.99 2.23 0.83 1.25 1.63 (incl. 67.05 8.57 6.60 3.98 3.04 2.88 2.83 2.67 2.60 1.98 1.90 1.27 1.17 1.02 52.31 (-)28.46 (-)0.90 (-)37.12 (-)28.81 (-)14.03 (-)52.91 (-)1.11 (-)6.92 100.00 (-)14.80 53.01 (-)6.40 (-)37.42 (-)21.98

16
others)

09.10.3010 (09.10.3004)

Turmeric fresh

UAE

4.19

12.00

186.40

Bangladesh South Africa UK Malaysia Saudi Arabia Iran Egypt Arab Rep. Israel Total Others)

0.19 0.54 0.15 1.05 0.23 0.92 0.09 0.69 (Iincl. 14.69

5.68 1.89 1.55 1.45 1.10 1.10 1.08 1.03 42.84

2889.47 250.00 933.33 38.10 378.26 19.57 1100.00 49.28 191.63

09.09.2010

Coriander

of

(09.09.2000) seed Quality Malaysia Singapore UAE South Africa HS Code Item/country 19.21 6.61 2.60 1.83 2002-03 17.75 5.40 4.07 2.15 2003-04 (-)7.60 (-)18.31 56.54 17.49 %change in 2003-04 over 200203 Nepal UK USA Total others) TOTAL INDIA) Source: DGCI&S, Monthly Statistics of Indias Foreign Trade Exports and Re-Exports March 2002,2003 & 2004, Kolkata (ALL 1,655.49 1,525.60 (-)7.85 1.22 3.53 0.64 (incl. 41.69 1.57 1.44 1.04 40.88 28.69 (-)59.21 62.50 (-)1.94

17

G.P. Gandhi Research Officer, Indian Institute of Foreign Trade, B-21, Qutab Institutional Area, New Delhi-110016.

Note: The author has used various references in the preparation of this article. For further .details please contact him.