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G.K. Nair

On tight supply in global market, increase in unit value

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Kochi Jan. 29 If the current trend is any indication, exports of spices from the country are expected to cross an all time high of Rs 3,000 crore during the current fiscal.

Total shipments as on December 31 in the current financial year stood at 2,50,528 tonnes valued at Rs 2,335.24 crore against 2,50,431 tonnes worth Rs 1,781.81crore in the same period a year ago, official sources said.

Target

The target set for 2006-07 is 3,06,000 tonnes valued at Rs 2,500 crore.

As the exports in terms of value during November and December 2006 were at Rs 292.19 crore and Rs 258.69 crore respectively as against Rs 170.08 crore and Rs 205.54 crore in the corresponding period in 2005, there is every possibility that the total shipments might cross Rs 3,000 crore for the first time in the history of Indian spices exports, they said.

Tight supply position in the world market of certain spices coupled with increase in unit value has pushed up the export earnings so far during the fiscal, they told Business Line.

Add to this, the exports of value added products such as curry powder/paste, mint products and spice oils and oleoresins has contributed over 43 per cent of the total forex earnings during this period. The rise in unit value of mint products has played a significant role. Shipments of this item had gone up to 10,400 tonnes valued at Rs 686.06 crore compared to 9,200 tonnes worth Rs 487.95 crore in April-December 2005. The unit value of mint products also went up from Rs 530.36 a kg in April - December 2005 to Rs 659.68 a kg in the same period this year.

Shipments of curry powder/paste increased to 6,900 tonnes valued at Rs 62.48 crore from 6,363 tonnes worth Rs 54.34 crore, while that of spice oils and oleoresins were at 4,585 tonnes valued at Rs 371.31 crore as against 4,648 tonnes valued at Rs 382.68 crore. This item has shown a marginal decline both in volume and value.

Pepper exports

One of the major contributors this fiscal has been pepper, export of which had gone up to 20,000 tonnes valued at Rs 203.53 crore as against 12,091 tonnes worth Rs 101.98 crore in April-December 2005. Thus, the commodity after a long time has improved its performance in terms of value and volume. The unit value had also moved up from Rs 84.34 a kg to Rs 101.79 a kg. The world tight supply position and the competitive price India could offer because of the availability of export subsidy from the Government contributed significantly to the increase in pepper exports, they claimed.

Cumin

Cumin has been another significant contributor with a record volume of 22,000 tonnes valued at Rs 166.05 crore during April-December 2006 compared with 7,354 tonnes valued at Rs 56.53crore. However, chilli and coriander have declined.

Value-added spices (curry powder and mint products, cumin and black pepper) had contributed Rs 417.32 crore to the increase of Rs 553.43 crore this fiscal as on December 31, they said.

Though there had been a decline in some of the items, the increase in unit value had helped to raise the value realisation, they added.

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