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G.K. Nair

Kochi , Oct. 26

LOW prices and high production in other producing countries have made the Indian chilli, fenugreek etc, non-competitive in the world market during April-September 2003-04, pushing the country's spices exports down both in volume and value.

The total exports stood at 1,04,302 tonnes valued at Rs 820.52 crore during the first half of the current fiscal as against 1,25,131 tonnes worth Rs 868.40 crore in the corresponding period in 2002-03, registering a drop of Rs 47.88 crore in value and 20,829 tonnes in volume, according to Spices Board sources. The major fall was in chilli, which declined to 28,250 tonnes valued at Rs 125.50 crore from 43,750 tonnes worth Rs 153.29 crore in the same period last fiscal, they said.

Similarly, there was a major drop in fenugreek, which dropped from 7,000 tonnes to 3,450 tonnes while cumin fell to 3,700 tonnes from 5,950 tonnes. However, exports of celery in which India still maintains a monopoly went up to 2,100 tonnes from 1,600 tonnes. At the same time, garlic exports surpassed the target of 1,500 tonnes for the current fiscal and touched 2,000 tonnes in the first half from 640 tonnes in April-September 2002-03.

Exports of value-added spices such as curry powder, spices oils and oleoresins continued to maintain consistency and showed an upward trend. Curry powder shipments moved up to 3,250 tonnes valued at Rs 25.07 crore from 2,800 tonnes worth Rs 20.8 crore. Spice oils and oleoresins increased to 2,175 tonnes valued at Rs 180 crore from 2,060 tonnes worth Rs 177.04 crore, they said. However, mint products experienced a decline to 4,070 tonnes valued at Rs 160.18 crore from 4,583 tonnes worth Rs 180.12 crore.

Attributing the drop in exports of chilli, fenugreek and cumin to good production of other origins and low prices, Mr Ramkumar Menon, Chairman, All India Spices Exporters Forum, told Business Line, ``we are expecting good crop this season by January or February which will make our product competitive and improve the exports.''

China is a major competitor in Chilli and they had a good crop. Added to this, Pakistan, which was not in the world market in the past 2-3 years has now entered the chilli market.

There has been a marginal decline in turmeric exports to 15,250 tonnes from 16,000 tonnes. In this item also India has been enjoying a monopoly and with the new crop arriving in January/February exports of this item will also go up, he said. However, of late, Burma and Vietnam are making inroads into the turmeric market and in future they would be competing with us, he pointed out.

In the case of Celery, ``we have a monopoly'' and what we produce is exported fully as the domestic market does not absorb it, he said.

The poor garlic crop in China and Egypt, the major producers, has led to the sharp increase in our exports of garlic, he said.

The exports of mint products will pick up in the second half of the current fiscal. According to Mr Menon the exports of value-added spices maintained steady turn over and it is expected to move up in the future and become the mainstay of Indian spices exports in the years to come.

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