To season exports

With the emergence of newer exporting countries that are gaining prominence  due to low cost of produce, India needs to adopt various strategies to boost its spice exports, says Charles J Kithu

India accounts for about 45 per cent (2,50,000 tonnes in 2002-03) of the global spice exports, which is only 8 per cent of the annual production of spices in India estimated at 3.2 million tonnes (in 2002). In its various agro-climatic regions India is home to 75 out of the 109 spices listed by the ISO (International Organisation for Standardisation). These are grown in an estimated area of 2.9 million hectares in the country, mostly on small-holdings, and determines  the livelihood of large number of the rural population. Indian spices are exported to more than 150 countries and the major markets are the US, UK, Japan, UAE, Sri Lanka and Germany.

Problems in export

High domestic demand: Except for pepper (30 per cent) and celery the bulk of the production is consumed locally and only10 per cent of chillies, turmeric, ginger, cumin and coriander are exported from the country.

Declining per unit realisation despite increased  exports: Though exports have increased consistently in volume terms during the past few years export value has not increased proportionately. In 2000-01 India exported 2,35,916 tonnes of spices worth $400.51 million but in 2002-03, though the quantity exported rose to 2,50,950 tonnes the value decreased to $370.10 million.

Predominance of few items in the export basket:

Indian spice exports consists of very few items. Up to 1999-00, Indian spice exports was pepper centric, with pepper contributing nearly 40-45 per cent of the total export earnings. With the emergence of new suppliers like Thailand, China and Vietnam; Indian pepper exports have suffered due to high FOB prices, excess production and slow growth of consumption.

Poor productivity: The productivity of some of the major spices grown in the country is very low compared to other producing countries. For example India produces only 336 kg/ha of pepper whereas Vietnam produces 2,750 kg/ha and Malaysia’s production is 2,222 kg/ha. Similarly for ginger, India's production is only 3,791 kg/ha whereas China produces 10,417 kg/ha.

Emergence of low cost competition: In the span of few years, Vietnam has achieved the distinction of being the largest producer and exporter of pepper. In 1998 it exported 22,000 tonnes of pepper, which touched a high of 78,000 tonnes by 2002.

Facing the challenge

To counter these challenges the Spices Board has proposed and implemented various strategies. During the Tenth Plan period, the Board proposes to bring 5,000 hectare of land under vanilla cultivation. Private initiatives are expected to bring another 10,000 hectare during the same period. It is expected that by the end of the Tenth Plan vanilla would be a major item of high value spice export from India. Similarly introduction of other exotic spices such as herbal spices like thyme, rosemary, parsley, oregano, and paprika with high colour value is being promoted.

Organic farming

The US, Europe and Japan are emerging as potential markets for organic spices and spice products. In order to have a share in this growing market, the Spices Board is providing assistance to NGOs, farmers’ co-operative societies and associations for organic spice production, processing and marketing.

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