Spices Export From India 4o2f1o

PRN’s : 1,2,3,4,5,7,15

 Produces over 46 Lakhs M.T of Spices  Exports around 175 Spices / Spice Products  Exports Spices to over 160 Countries  1500 ed Exporters  350 Manufacturer Exporters  100 Exporters (7%) Contribute Over 80% of Exports  98 Units have In-house Laboratories  58 Spice House Certificate Holders

• Spices exports have ed substantial growth during the last one decade. • It has increased from 2,03,398 tonnes valued US $ 241million in 1995-96 to 3,50,363 tonnes valued US $ 593 million in 2005-06. • ing an annual average growth rate of 9.4% in value . • During the year 2006-07, the spices export from India has ed an all time high both in of quantity and value. In 2006-07 the export of spices from India has been 3,73,750 tonnes valued MLN US $ 793 million ing an increase of 34% in value over 2005-06. • India commands a formidable position in the World Spice Trade with 47% share in Volume and 40% in Value.

QTY IN M.T; VALUE RS CRORE Item

Quantity

Value

PEPPER

35000

519.50

CARDAMOM(S)

500

24.75

CARDAMOM(L)

1325

15.00

CHILLI

209000

1097.50

GINGER

6700

28.00

TURMERIC

49250

157.00

SEED SPICES

82100

507.25

VANILLA

200

17.75

CURRY POWDER

11500

111.00

MINT PRODUCTS

21100

1280.50

OILS & OLEORESINS

6600

563.00

TOTAL (Including Others)

444250

4435.50

4.16 Lakh MT

0.44 Lakh MT

To Achieve US$ 10 Billion of

Indian Spices Logo • The Indian Spices Logo is awarded to those who export spices in branded consumer packs. • The award is given to those who adherence to practices ensuring quality, hygiene and safety as well as HAC certification. • Nineteen (19) spice exporters have been awarded with Indian Spices Logo. • Board has ed Indian Spices Logo with the Trade Registry Authorities in 18 countries.

Spice House Certificate • Latest in the Board’s Campaign for Quality up gradation • Issued to exporters having a long term quality commitment as well as an objective of sustained growth in exports • Exporters of branded spices and spice products in consumer packs are the focal point of these logo programme.

Cardamom

• e-Auction Centre of @ Bodinayakanur, Theni Distt., Tamilnadu with 40 terminals. • 2nd centre @Vandanmettu, Idukki, Kerala sixty terminals. • The traditional outcry changed to sophisticated buying and selling.

Year

Quantity Value (Tonnes) (Million US$)

Growth Rate (%) Quantity Value

1990-91

109636

134.97

1995-96

203398

241.43

13

12

2000-01

235917

400.51

3

11

2005-06

350363

592.90

8

8

2007-08

444250

1101.80

13

36

200809(Upto October)

284560

710.62

Country Name,% of total Value

NRC-Spices Ajmer, Rajasthan

National Research Centre ( Seed Spices)

• Set up by the Indian Planning Commission as a part of the IX’th Five Year Plan, in April,2000. • After realizing the potential of seed spices crops for providing income security to the people of arid to semi-arid zones in India. • To initiate research work on seed spices • Improving the productivity and quality with reference to export value and domestic demand.

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Need for empowerment of the growers of spices and to ensure better price realization for them. The Spices Board has taken steps to establish Spices Parks at the following seven locations : a) Chhindwara [ M P] – Functional Since Feb 2009 b) Guntur [A P] c) Sivaganga [ T N] d) Idukki [Kerala] e) Mehsana [GJ] f) Jhalawar [Rajastan] g) Bydagi [Karnataka]

 

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The projects on Spices Park are primarily intended to benefit the growing community through Aim is to better price realization of their produce. The exporters can also set up their unit in the Parks for processing spices under the and conditions of the Board.

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To encourage the production of Spices in the country in the most efficient manner. To provide the required state-of-the art infrastructure for improving production. To be able to export the final product as fresh as possible. Quality improvement, grading and packing, warehousing, etc – basically a lot of value addition, which would lead to better price realization.

1.Promotion of Indian Spice Brands Abroad • Products and Packaging Development and Bar Coding • Brand Promotion Interest free loan up to 100% for slotting/listing fee and 50% of the cost of product development subject to a maximum of 2.5 cr. per brand and Rs.5.00 cr. where brand buyouts is involved

Trade Promotion: I. Sending Business Samples Abroad Assistance up to Rs.50,000/ per exporter per year is provided to meet the cost of courier / air freight charge for sending business samples to the buyers abroad.

I. Printing Promotional Literatures /Brouchers Assistance @ 50% of the cost subject to a maximum of Rs.2 lakhs per broucher twice per exporter during the Plan Period

III. Packaging Development & Bar Coding Registration Assistance @ 50% of the cost of Packaging Development and Bar Coding Registration subject to a maximum of Rs.1.00 lakhs per exporter per year

2.Participation in Fairs/Exhibitions

International

 Assistance by re-imbursing 50% of the Air fare subject to a maximum of Rs. 60,000 for Spice House/Logo Exporters and Rs. 40,000 for ed Brand and Organic Certificate Holders per year.

3.Participation in Meetings/Seminars

International

 Representatives are assisted to participate in the International Meetings/Seminars by extending financial assistance up to 50% of the Air fare subject to a maximum of Rs.1.5 lakhs per year.

4. Infrastructure Development – Adoption of Hi-Tech in Spice processing – Technology and Process up gradation – Setting up / up gradation of in house quality labs – Quality certification, validation of check samples, training of laboratory personnel. • Grant in aid is provided to the tune of 33% of the cost subject to a maximum of Rs.100 lakhs for general areas and 50% of the cost subject to a maximum of Rs.200 lakhs for special areas

• • • • • • •

International Media Relations Domestic media relations Press Releases/Press Conferences Facilitating visit of agri students Booklets and posters [Domestic] Spice distribution/gift boxes Production of films /CDs

• Inconsistency in production • Cleanliness of the material • Competitive prices from other sources

• • • •

Agents/Brokers Traders/Importers Grinders/Processors End s

 Brokers are intermediaries that bring buyers and sellers together, for which service they get paid a commission.  Spices and herbs do not physically come into the possession of brokers.  Customers can be trading companies, but are mostly processors. Especially when a trader or importer is unknown, a broker will be used as an intermediary to diminish the risk involved.  In certain cases, brokers represent a specific party either as its selling agent or its purchasing agent.

 These specialised traders import on their own and sell to grinders/processors and directly to major end s.  They mainly buy bulk quantities of un ground spices and resell them at an increased price.  The importer is responsible for all costs associated with import, such as duty, terminal fees, unloading charges, and local delivery and warehouse costs.  The major trading centres for spices are New York, Rotterdam, London, Hamburg and Singapore.  Organic traders are often specialised in a broader range of organic products, instead of purely herbs and spices

• Grinders and processors purchase raw spices and perform cleaning, grinding and (retail/catering) packaging. • They have central warehouses for distribution to industrial s throughout specific areas, or they deliver directly to the distribution centres of supermarkets or institutional s. • Next to the (few) specialised organic grinders and processors, conventional grinders and processors are also increasingly making their inroads into the organic sector.

• The largest group is the foodprocessing industry. • Requirements are purchased either from grinders/processors or directly from importing/trading companies, and in some (rare) cases directly from foreign producers.

Export of Chilli-A Case Study

Chilli- World Exports Share(‘94)

Chilli- World Exports Share(‘04)

Mexico 9% India 26% Spain 18%

Turkey 5% Morocco 8% Pakistan 8%

China 26%

State Wise contribution of Chilli

AP

18%

27%

8%

Karnataka MP Maharashtra Orissa

2% 9%

12%

5%

19%

UP TN Others

•

Share of Chilli in Indian spices export is around 20-40% in volumes

•

India export its chilli mainly to Sri lanka , Bangladesh, Korea, Malaysia, Singapore, Japan, UK, , and USA Bangladesh 13%

Others 28%

Malaysia 6% Nepal 3%

Usa 26%

Sri Lanka 24%