The Hindu Business Line : `Infrastructure needed for value-added spices export'

Not only that it is not picking up the way it should have been but also the country is losing its prime position as the leading supplier in some of the items. What are the major constraints and how it could be overcame. Mr Ramkumar Menon, Chairman, All India Spices Exporters Forum (AISEF), speaks to Business Line.

What is the potential for exports of value-added spices?

Exports of value-added spices such as oleoresins, spice oils and ground spices have shown an upward trend. But for exporting more we need the required infrastructure for manufacturing these products, such as better processing and packaging equipment and making available quality raw materials at acceptable prices.

In fact, there is a scope for exporting branded products. Last fiscal, we have exported Rs 54 crore worth branded products. To expand this we need the required infrastructure facilities.

The increase in demand for ground spices from the US is a clear indication that the trend is changing. They are passing more and more such work to source because of growing confidence in our ability apart from the low cost of production compared to the developed world. The trend would shift to spices in retail consumer packs. Besides, supply of spices for seasoning and mixes would also pick up in a big way. The World Spices Congress to be held in Hyderabad in Jan 2004 will be focussing "Spices flavours and beyond".

Another way to enhance our spices exports is to promote the Indian cuisine in the traditional and non-traditional markets whereby the consumer would develop a liking for the Indian food and through which to the spices. It involves substantial investment. We are implementing with Government support through the Spices Board. We have to do something the way the Chinese and the Taiwanese did to promote their foods all over the world to popularise our cuisine abroad.

How are the stringent quality parameters of importing countries affecting the exports?

We have to meet the stringent quality parameters set by the importing countries. We have only started just to meet some of the requirements. However, some of the conditions set by the buyers overseas are not practicable such as the one relating to pesticides residues. The maximum residue level (MRL) set for foods is applied to spices also. This is not acceptable as it is not realistic because the daily average intake of spices is much less than the foods. Therefore, separate MRL needs to be set for spices exclusively.

Has the AISEF taken any step on this issue?

The AISEF has taken up this issue along with the European Spices Association through the Codex to fix proper MRLs for spices based on monitoring data. Codex has agreed to do it. Efforts now are to collect data and present it to the Codex. For this we have got the support of Spices Associations in some of the importing countries. We have collected the data through the Spices Board and it has been submitted to the Union Government. South Africa has been selected to present the issues before the Codex for spices. Once it is done, there will be a harmonised standard for spices all over the world.

Some of the European countries such as Germany, Spain and Italy, are following different standards extremely stringent and difficult to comply with.

What are the constraints that are impeding the exports growth?

If you want to achieve a sustained growth in exports, there should be availability of the spices in required quality and at competitive prices.

The current situation is such that there is no exportable surplus in the case of many items because of the huge domestic market where the growers are getting remunerative prices. Except for few items such as celery seeds and turmeric, most of the other items are either at short supply or unavailable. When cumin, clove, and cinnamon are unavailable, availability of items like pepper and coriander are inadequate. This not only results in increased raw material price but also to a great extent impedes the export growth.

We have to compete with these countries, which offer its products at low prices. We are not competitive in terms of price as our productivity is the lowest in the world in many spices. The size of the land holding, lack of extension services and financial support could be responsible for this phenomenon. In fact, there is no real concern here on these factors and hence it has not got any priority.

It seems that the research and development activities here are either inadequate or not properly focussed. Besides, lack of coordination among different R&D establishments results in poor dissemination of the technology and information to the farm level. The exporters had an interface with the scientists recently on what the former needs. They had agreed to work on our demands. We have to supply what the overseas consumer wants. Hence the scientists here will have to develop the right variety for supplying to the farmers to grow.

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`Infrastructure needed for value-added spices export'