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Low demand stunts oleoresins export

G.K. Nair

KOCHI, Aug. 8

THOUGH exports of oleoresin, essential oils and spices oils have shown significant growth in recent years, the industry has been able to utilise only 35-40 per cent of its total installed capacity for want of enough demand.

From exports around Rs 25 lakh in 1972, shipments of oleoresins and spice oils have increase around Rs 3.45 crore last fiscal. ``It is a significant achievement and we can definitely raise it to at least Rs 1,000 crore in the near future if effective pro motional activities are undertaken,'' Mr C.V. Jacob, Managing Director, Synthite Industrial Chemicals Ltd told Business Line.

There are 44 units in the country with a total installed capacity of 10,000 tonnes but of this only eight units are operating profitably making for 90 per cent of the total exports, according to him. Of this, 13 of them are in Kerala.

The annual global consumption growth rate is around 5 per cent per annum. Given the slow growth in global demand and poor rate of capacity utilisation, there is little chance to raise the installed capacity in the immediate future.

Of the total oleoresin exports, 50 per cent is chilli and it is the single largest oleoresin used for natural colour in the world. The global consumption of this item is 3,000 tonnes and of this 1,750 tonnes is exported from India.

Following the short-supply of this high-colour chilli, there was potential to export around 1,000 tonnes more raising exports revenue by Rs 130 crore. Besides, the colour component known as capcisin found usage in shaving creams, medicines and as asubsti tute for chilli, Mr Jacob said.

The second major export item is pepper oleoresin.

Piperine is mainly used in the food industry, mostly as a substitute for pepper.

The major items included oleoresins of ginger, celery seeds, turmeric, cardamom, mustard, seed spices such as coriander, fenugreek, clove, cumin etc, casia and nutmeg.

The total domestic consumption of oleoresin except mustard is to the tune of Rs 10 crore. If these items are made available for use in the individual households, the demand could go up substantially, according to Mr Jacob.

``Currently, the per capita consumption of spices is much less in many of the countries,'' said Mr Sanjay Mariwala, Managing Director of Kancor Flavours Ltd. According to him, there is more export potential in this sector But, it calls for a generic prom otion of Indian and Asian food in foreign countries. ``The opportunities are expected to grow as the global food industry is undergoing dynamic changes with changing food habits of the people,'' he said.

He also felt that there is a need to ``add new products'' and that requires a research-oriented thinking. There were many other areas apart from food industry such as medicine, cosmetics and perfumery sectors where these items could be used. Such researc h called for huge investments, scientific marketing and promotional activities, which should be done jointly done by the Commerce Ministry, Spices Board and the industry, he opined.

Pic.: A spices oleoresin extraction plant at Kochi in Kerala.

Picture by K.K. Mustafah