The Hindu Business Line : Increase in production boosts chilli, coriander exports

THE increase in exports of chilli, coriander and other spices during the first half of the current fiscal indicates that if these commodities were produced in surplus it will enable the country to regain lost markets.

Though the tangible increase in exports of chilli, which crossed the target of 75,000 tonne for the current financial year in the first half itself, is attributed to the poor crop in other producing countries such as China, it was made possible by an increased production in the country, , Mr Ramkumar Menon, President, All India Spices Exporters Forum, told Business Line.

He said this year there was a better crop and the production was estimated at around 10.5 lakh tonnes from an area of 9.6 lakh hectares. Similarly, the production of coriander is also estimated at 2.5 lakh tonnes from a total area of 4.2 lakh hectare.

India produces 2.5-3 million tonnes of spices of different varieties worth $3 billion. Andhra Pradesh alone commands 47 per cent of chilli production. In fact, no country in the world has so much area and production of chilli as India.

But, unlike other producing countries, about 90 per cent of the production is absorbed by the huge domestic market. Therefore, traditionally, the Indian chilli price is taken as the international price.

"If good quality chilli is made available for export at competitive prices, we would be able to market the surplus in the world market as raw and valued-added products," Mr Menon said.

During the first half of the current fiscal, export of chilli stood at 75,300 tonne valued at Rs 276.31 crore. The unit value dropped to Rs 36.67 a kg in April-Sept 04 from Rs 44.42 in the first half of 2003-04.

"Our main competitor of chilli in the world market, China, has a poor crop this year and, hence, the buyers turned towards us. We could fill the gap because we had the surplus quantity," he said.

Similar is the case with coriander and some other spices, he said. Coriander crossed the target of 18,000 tonne to touch 22,000 tonne valued at Rs 51.71 crore. Exports of chilli and coriander during the first half of 2003-04 stood at 28,250 tonne and 7,250 tonne respectively.

Turmeric, in which India has a monopoly, crossed 23,500 tonne valued at Rs 88.14 crore against 15,250 tonne worth Rs 66.17 crore in the first half of last fiscal and the current year's target of 31,000 tonne.

Exports of fennel stood at 4,375 tonne, while fenugreek was at 8,400 tonne compared to 2,025 and 3,450 tonne respectively in the same period last fiscal.

Cumin shipments also increased to 8,300 tonne from 3,700 tonne.

Other seeds, such as mustard, aniseed, bishops weed (Ajwain seed), Dill seed and poppy seed, also went up to 8,200 tonne from 4,550 tonne.

Other main items, which have shown increase in exports, are value-added products especially, spice oils and oleoresins. Despite competition from other spices, producers and the developed nations that have extraction, India could raise its share to 55 per cent of the world market, said Mr Menon.

During April - September, export of these items stood at 2,875 tonne valued at Rs 237.2 crore against 2,175 tonne worth Rs 180 crore in the same period last year. Thus, value-added items including curry powder/condiments and paste and mint products contribute more than 30 per cent of the total spices exports revenue, he said.

This has been made possible by the availability of good quality raw materials such as chilli and cardamom and the freedom to source them from other producing countries, Mr Menon said.

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