Last year, the Spices Board had described the export performance as reaching another milestone because earnings crossed the $1 billion mark. Volume shipped also reached a new high last year with 444,250 tonnes of spices worth Rs.4436 crore being exported. In dollar terms, the earnings were $1.102 billion. Compared to the previous fiscal, volume shipped had risen 19 per cent, and value earned had increased 24 per cent in rupee terms and 39 per cent in dollar terms, surpassing targets (117 per cent of the targeted volume, 123 per cent of rupee earnings and 126 per cent of dollar earnings).  

Now, these records are getting beaten. Between April and November, the latest period for which data is available, spices exports rose to 310,830 tonnes from 294,335 tonnes in the same period of last fiscal. Earnings have risen to Rs.3451 crore from Rs.3010 crore; in dollar terms, earnings have increased to $786 million from $743 million. Thus volume shipped has increased six per cent, and value earned 15 per cent in rupee terms and six per cent in dollar terms.    

Spices Board has fixed an export target of 425,000 tonnes valued at Rs.4350 crore or $1.025 billion for the current fiscal. In the eight months till November 2008, 73 per cent of the targeted volume, 79 per cent of the value in rupee terms and 77 per cent in dollar terms have been reached. But, the target is lower than the actual achievement of last year. So, with actual performance being higher than last year’s achievement, exporters are sure to surpass the targets.  

Chilli, the hot export

In the current fiscal, chilli topped the export basket at 1.32 lakh tonnes worth Rs.730 crore. In the same months of last fiscal, 1.34 lakh tonnes had been exported, but the value was marginally lower at Rs.728 crore because the price dropped by a rupee per kg. Traditional buyers of Indian chilli like Malaysia, Indonesia and Sri Lanka continued their purchases this fiscal. As chilli production has fallen in many countries, the demand for Indian chilli was high. Spices Board has claimed that its mandatory quality testing norms had helped importers seek Indian chilli and chilli products.  

Volume-wise, turmeric occupied the next highest slot with 36,500 tonnes up from 33,390 tonnes last year, fetching Rs.169 crore (Rs.101 crore). Value-wise, mint products including mint oil, menthol and menthol crystal fetched the highest earning of Rs.915 crore from a shipment of 13,000 tonnes against Rs.929 crore from 14,950 tonnes.  

Pepper disappoints

Pepper, the king of spices, disappointed as only 16,850 tonnes worth Rs.282 crore were exported against 24,320 tonnes worth Rs.365 crore last fiscal.  The earnings dropped despite the price rising to Rs.167 a kg from Rs.145 because there were less takers. Economic recession in many cash-rich markets lowered the consumption and reduced the demand for Indian pepper. Spices Board has targeted an export of 35,000 tonnes of pepper worth Rs.520 crore for the current fiscal, but exporters contend that it would be a tough task to reach this.  

There is, however, encouraging news for cardamom. Export of small grades rose to 315 tonnes worth Rs.20 crore from 300 tonnes worth Rs.13 crore. The year’s target is to export 550 tonnes worth Rs.25 crore. Shipment of large grades has increased to 1050 tonnes valued at Rs.13 crore from 805 tonnes worth Rs.9 crore; the target is to ship 1300 tonnes worth Rs.15 crore.  

Ginger export has fallen in respect of both volume and value. But the shipment of coriander, cumin, celery, fennel, fenugreek, garlic, vanilla, nutmeg and mace has increased on both terms.

Among the value-added products, curry powder and paste, spices oils and oleoresins have posted an increase in both volume and value. Seed spices like mustard, aniseed, bishops weed, dill seed and poppy have also shown increases in export terms. Smaller spices like tamarind, asafoetida, cassia and saffron are other contributors to increase in spices basket.  

To promote exports, Spices Board is participating in 18 international fairs in the current fiscal. It had claimed good response in all the fairs it had participated. Individual companies have also been undertaking their own export promotion.

There is a preferential demand for Indian spices in global market. The demand is more pronounced in the commercial consumer sector like restaurants, hostels, hotels and canteens. Indian families living abroad are regular consumers and with Indian and Chinese food catching up in western societies, the demand for Indian spices has increased, promising another hot year ahead for Indian spice exports.