The Hindu Business Line : Spices exports touch all-time high

The export of spices in 2005-06 has surpassed the $500-million mark for the first time in the country's spices trade history, while achieving an all-time high in terms in rupee value.

The total shipments stood at Rs 2,295.25 crore ($518 million), registering a growth of 4.3 per cent in rupee and 5.6 per cent in dollar terms over 2004-05.

However, volumes fell by 4.5 per cent to 3,20,527 tonnes against 3,35,488 tonnes worth Rs 2,200 crore ($490.60 million) in 2004-05.

The decline in chilli exports to 1,13,250 tonnes (from 1.38 lakh tonnes) resulted in overall decrease in volume.

(The high export volume of chilli in 2004-05 was an exceptional case, made possible by significant crop reduction in China, a major competitor.)

The increase in export of value-added spices such as mint products, spice oils and oleoresins, curry powder, etc., helped in achieving higher value despite the reduction in volume.

These items together contributed 50 per cent of the total value realisation.

The average f.o.b. unit value realisation rose to Rs 71.61 a kg from Rs 65.58 earlier.

"We earned foreign exchange worth of Rs 575 crore from mint products and Rs 500 crore from spice oils and oleoresins," said Spices Board sources.

In terms of volume, chilli (35.3 per cent), turmeric (14.5 per cent), and garlic (9.1 per cent), together accounted for 49 per cent of the total export volume.

Among the individual items, pepper, cardamom (small), garlic, nutmeg and mace, curry powder, mint products, and spice oils and oleoresins, saw increase both in terms of quantity and value, whereas cardamom (large), turmeric, and vanilla, clocked increase only in volume.

The products that recorded decline in both quantity and value in 2005-06 were chilli, ginger, seed spices like coriander, cumin, celery, fennel, fenugreek, and other seed spices.

Export of pepper rose to 16,700 tonnes (14,150 tonnes) worth Rs 140.50 crore (Rs 121.40 crore).

The introduction of WTO-compatible export subsidy scheme for pepper had an impact on the increase in exports.

The US continued to be the major market for pepper, with 6,500 tonnes, followed by UK (1,600 tonnes), Germany (1,250 tonnes), Italy (1,050 tonnes), and Canada (1,000 tonnes).

Export of cardamom (small) increased to 875 tonnes (650 tonnes) worth Rs 27 crore (Rs 23.90 crore). The country exported 530 tonnes to Saudi Arabia and 220 tonnes to Japan.

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