Business

Excellent Export Performance of Spices

Review
During the first nine months of the financial year 2007-08, spices export from India has reached 3,18,635 tonnes valued Rs.3155.20 crores (US$ 781.07 million). Compared to the export performance of 2,68,120 tonnes valued Rs.2575.08 crores (US$ 564.61 million) in the same period of 2006-07, the achievement during the year is higher by 38% in dollar terms of value and 19% in volume. In rupee terms of value, the growth is 23%. As against the target of 3,80,000 tons valued Rs.3600 crores (US$ 875 million) fixed for the year, 84% of quantity and 89% of value have been realized in the first three quarters of the current financial year.

Spices like pepper, chilli, coriander, fennel, fenugreek and other miscellaneous spices performed better than last year. Value added spice products like curry powder, spice oils and oleoresins and mint products have also done better as compared to last year. Performance of some of the items like cardamom (small) and (large), ginger, turmeric, cumin, celery, garlic, vanilla and nutmeg & mace fell short of last year’s performance.

During April-December 2007, the export of pepper from India has been 27,000 tonnes valued Rs.391.63 crores, which is higher by 24% in quantity and 77% in value as compared to the last year’s achievement of 21,780 tonnes valued Rs.221.82 crores. The average fob unit value has increased to Rs.145.05 per kg from Rs.101.84 per kg of last year.  During the period, Indian pepper has become more competitive in the international market as compared to other major producing countries like Vietnam, Indonesia and Malaysia. The major buyers of Indian pepper are USA followed by UK, Italy, Germany and Canada.

Among the seed spices, Coriander, Fennel and Fenugreek performed better than last year.  During the period April-December 2007, 18,500 tonnes of Coriander valued Rs.75.42 crores exported against 15,080 tonnes valued Rs.55.36 crores of last year.  It is reported that the East European countries like Romania and Bulgaria, were Coriander is produced, has suffered drought condition and the supply from these origins are on a lower side. During the year 3,850 tonnes of Fennel valued Rs.21.16 crores exported against 2645 tonnes valued Rs.17.49 crores of last year.  In the same period, export of Fenugreek has increased to 8,750 tonnes valued Rs.25.36 crores against 5,965 tonnes valued Rs.19.11 crores of last year.

In the case of Cumin seed there is a decline in export volume ie. from 21,775 tonnes to 18,000 tonnes registering a decline of 17%.  However, the export value has shown an increase of 16% as the export unit value realization has gone up from Rs.75.59 per kg in 2006-07 to Rs.106.38 per kg in 2007-08.

During April- December 2007, the export of valued added spices like Curry powder, Spice Oils & Oleoresins and Mint products have shown an increase both in terms of quantity and value as compared to the same period of last year and the growth in terms of value has been 29%, 4% and 9% respectively.   During the first nine months of the current financial year 8,400 tonnes of Curry powder valued Rs.82.18 crores exported from India as against 7,010 tonnes valued Rs.63.52 crores of last year.  It is significant to note that the unit value has increased from Rs.91/kg. to Rs.98/kg.  In the case of Oils & Oleoresins, the quantity exported has increased from 4,700 tonnes to 4,800 tonnes and value realization from Rs.388.90 crores to Rs.402.93 crores.  During the period, the export of Mint products has also increased from 12,290 tonnes valued Rs.818.26 crores to 14,250 tonnes valued Rs.888.95 crores. Export of Mint products accounts for 28% in terms of value of the total export of spices from India. Spice Oils and Oleoresins and Mint products together accounts for 41% of our total export in terms of value.

The statements showing item-wise export of spices from India during December 2007 and April-December 2007 compared with December 2006 and April-December 2006, percentage achievement of target, percentage change in 2007 etc. are given in Annex – I and II.