The Hindu Business Line : Chilli exports set to surge, monopolise EU markets

Kochi, Oct. 22 If the current trend in chilli exports is any indication during the current fiscal, in all probability it will repeat or surpass its record performance in the last fiscal and the target set for 2007-08.

The country’s shipments during April – August 2007-08 stood at 88,000 tonnes valued at Rs 487 crore against 47,294 tonnes valued at Rs 225.81 crore.

According to Mr P.J. Kurian, Chairman, Spices Board, chilli exports last fiscal stood at 1,48,500 tonnes valued at Rs 807.75 crore, against 1,13,174 tonnes valued at Rs 403.01 crore in the previous fiscal. Target fixed for the current fiscal is 1.35 lakh tonnes valued at Rs 675 crore.

The unit value realisation has increased from Rs 36 in 2005-06 to Rs 54 per kg last fiscal and to Rs 55 a kg during April – August 2007-08.

The reasons attributed by the exporters for the increase in shipments are short supply from other origins and the ban by the European Union on imports of chilli from Pakistan due to the reported presence of aflatoxin in its produce.

Shipments of Indian chilli to the European markets are said to have shown a tangible increase during the current fiscal paving the way for the commodity to establish a monopoly in these markets because of a reported fungus attack on Pakistan’s chilli crops and a consequent ban on imports of the commodity by the European Union. Untimely rains, coupled with fungus attack, is reported to have brought down chilli production in Pakistan by 50 per cent of its normal production of 1,22,900 tonnes in 2006 to 61,900 tonnes in 2007.

In the past three years, the European Union had banned import of red chilli from Pakistan for the presence of aflatoxin.

According to reports, Japan has also stopped import of chilli powder from Pakistan.

Besides, unfavourable weather conditions in China and other chilli producing countries have resulted in production loss, leading to short supply.

India is at an advantageous position as the mandatory sampling, introduced by the Spices Board for chilli and chilli products consignments, for the presence of Sudan I - IV and aflatoxin before shipments has boosted the confidence of the overseas buyers, a senior Board official told Business Line.

After checking the samples drawn from the consignments, a certificate is issued by the Board clearing the shipments. Probably, such a system does not seem to exist in any of the other major chilli producing and exporting countries at present, he said.

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