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G.K. Nair

KOCHI, Aug. 6

THE oleoresin industry may turn out to be the next victim to the prevalent drought in the southern States.

Failure of southwest monsoon, especially in Andhra Pradesh and Karnataka, could lead to supply shortage and a resultant price rise, according to oleoresin industry sources here.

The two States are the leading suppliers of the major raw materials for the industry namely, chilli, turmeric and ginger.

However, paprika-manufacturing units might be spared as they could import raw materials from abroad, the sources said.

The annual chilli requirement of the oleoresin industry is pegged at 6,000-8,000 tonnes. ``If the drought conditions continue in AP and Karnataka, chilli prices may be impacted,'' said Mr Sanjay Mariwala, Managing Director of Kancor and former President of the All-India Spices Exporters Forum.

He told Business Line that still there was still time for the crop in these States and hence if the rains arrived at least by late July or early August there might not be any serious problems.

But, Mr C.V. Jacob, Managing Director, Synthite Chemicals, said his company had already resorted to paprica imports for manufacturing paprika oleoresin. The unit had already imported 1,000 tonnes of paprica from South Africa.

He said paprica was cultivated at present in Mysore, Badagai in Karnataka and Warangal in Andhra Pradesh and the production was much less than the demand of the industry.

Processing of Indian paprica, he said, was more expensive and for making 300 tonnes of oleoresin, 10,000 tonnes of paprica was needed. In fact, of the 15,000 tonnes of paprica produced in Andhra Pradesh, the domestic market absorbed about 10,000 tonnes, he said.

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