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G.K. Nair

Kochi , Feb. 17

GROWTH of exports of oleoresins and spices oils, currently at 15-20 per cent, can be higher if the raw materials such as penchant-free paprika and good quality turmeric are indigenously available, according to Mr C.V. Jacob, Managing Director of Synthite Industrial Chemicals.

Speaking to Business Line, Mr Jacob, whose company is the country's largest exporter of spices oils and oleoresins, said India's share in the world demand of 3,500 tonnes of chilli colour and capsaicin stands at 50 per cent.

"In fact, of the total exports of oleoresins from India is accounted for by chilli colour and capsaicin," he added.

As the world market accepts only zero penchant chilli, the company has developed a method to separate colour and capsaicin from the high colour chilli grown in the country.

Synthite, which has developed a technology to separate colour and capsaicin, has set up a factory at Harihar in Mysore where 15,000 tonnes of high colour chilli produced in Bedagi in the region is processed and extracted. "Some 750 tonnes of colour and 60 tonnes of capsaicin are produced here."

The company, with turnover of Rs 230 crore, exports 95 per cent of its products, while five per cent was sold in the domestic market to manufacturing units, Mr Jacob said.

Another important item in great demand overseas is turmeric colours. The demand of his company for turmeric with high curcumin content is 2,500 tonnes a year.

However, indigenous production of high quality turmeric, i.e., the `Alleppey turmeric', is around 1,700 tonnes, and was not fully available to the industry, he said.

Only this variety has the highest recovery rate of 3.5 per cent while turmeric grown elsewhere in the country has only 1.75-2 per cent rate. Hence, the locally available other varieties are economically unviable.

The industry needs around 4,000 tonnes of good quality turmeric a year and the requirement is met by imports, he added.

Of late, there has been a demand from East European countries and even from the Gulf.

Increasing awareness about the benefits of using oleoresins and spices oils and natural colours is pushing up demand from these countries, he said. "If you leave out paprika colour, 75 per cent of the oleoresin requirement is met by units in Kerala."

The growth of the industry could be attributed mainly to the liberalisation policy and the advance licence facility.

However, the recent decision to withdraw this facility in the case of pepper was a discouraging step, according to Mr Jacob.

The company's R&D department is working on developing different flavours using essential oils and oleoresins as per the preference of consumers such as housewives and the hotel industry in various countries for use in different cuisines.

The project is likely to be completed in a year or two, he said.

According to Mr Jacob, because of the low cost of production and availability of spices in the country, the oleoresin and spices oils industry is concentrated here while the buyers are mainly in the US, the EU, Canada, Australia and Japan.

There are seven units in the country of which five are located in Kerala. There is a stiff competition among the manufacturers in the country, leading to undercutting, he added.

"This has resulted in low margins. There is competition in buying the raw materials as well as in selling the products abroad."

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