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G.K. Nair

Kochi, Oct 21 Exports of spices from the country are unlikely to be affected by the current financial turmoil world over, as these items are essential food ingredients.

In fact, there has been a 10 per cent growth in the country’s spices shipments during the current fiscal until recently. But, it has, of late, shown a decline of two per cent to eight per cent, a senior Board official told Business Line.

But, there are chances of increase in the use of oleoresins, which are cheaper, easily storable and of good quality, he pointed out.

Despite the weakening of the rupee against the dollar, of late, exports of spices in September dropped to 29,000 tonnes valued at Rs 392.96 crore ($86.24 million) from 34,828 tonnes valued Rs 379.42 crore ($94.07 million in September 2007. The major items exported in September were chilli, cumin, mint products, spice oils and oleoresins, pepper and turmeric.

The cumulative spices export during the first half of the current fiscal is estimated at 2,53,550 tonnes valued at Rs 2,660.75 crore ($624.15 million) against 2,33,825 tonnes valued at Rs 2,329.51 crore ($570.52 million) in the corresponding period a year ago.

Compared with last year, export has increased of eight per cent in terms of quantity, 14 per cent in rupee value and nine per cent in dollar terms.

Spice oils and oleoresins including mint products contributed 40 per cent of the total export earnings.

Chilli contributed 22 per cent followed by cumin nine per cent, pepper eight per cent and turmeric five per cent.

However, shipments of pepper and mint products have declined both in terms of quality and value as compared to last year and exports of ginger and nutmeg have declined in quantity only.

During April-September 2008, pepper exports stood at 12,750 tonnes valued Rs 215.70 crore as against 19,165 tonnes valued Rs 279.15 crore of last year.

The average export price of pepper has gone up to Rs 169.18 a kg Rs 145.66).

During the period, the country exported 1.09 lakh tonnes of chilli valued at Rs 581.18 crore (1,08,760 tonnes valued at Rs 590.37 crore).

The traditional buyers of Indian chilli viz. Malaysia, Indonesia and Sri Lanka continued their buying this year also.

In addition to this, Pakistan was also very active in the market at the beginning of the year.

The reported lower output from other producing countries and mandatory quality testing of chilli and chilli products by the Board have also helped India to achieve this higher level of export in chilli.

The export of coriander seed in April-September has been 15,500 tonnes valued at Rs 105.25 crore (13,240 tonnes valued Rs 50.99 crore) registering an increase of 17 per cent in value and 106 per cent in quantity.

The unit value of export has gone up to Rs 67.90/kg (Rs 38.51).

The export of cumin seed in April-September has increased to 23,500 tonnes valued at Rs 241.73 crore (11,920 tonnes valued at Rs 125.33 crore).

The reported crop failure in other major producing countries viz. Syria, Turkey and Iran helped India to achieve this higher level of export in cumin.

The export of value-added products like such as curry powder and spice oils and oleoresins have shown substantial increase both in terms of quantity and value as compared to last year.

Against the export target of 4.25 lakh tonnes valued Rs.4,350 crore ($1025 million) for the year, the achievement of 2,53,550 tonnes valued at Rs 2,660.75 crore ($624.15 million) up to September is 60 per cent in quantity and 61 per cent in value terms.

More Stories on : Exports & Imports | Spices & Condiments | Financial Markets

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