The Hindu Business Line : Spices export exceeds volume target

EXPORT of spices has surpassed the target of 2,50,000 tonnes by 50,000 tonnes during April - February 2004-05, while in terms of value it was Rs 134 crore short of the target of Rs 2,000 crore.

Total exports stood at 3,03,166 tonnes valued at Rs 1,866.29 crore this fiscal up to February as against 2,02,515 tonnes worth Rs 1,636.24 crore in the same period last financial year, registering an increase of 1,00,651 tonnes in quantity and Rs 230.05 crore in value, Mr S. Kannan, Director (Marketing), told Business Line on Wednesday.

He said chilli, ginger (fresh and dry), turmeric, coriander, cumin, fennel and fenugreek continued their upward march over the targets set by the Spices Board.

Chilli topped the list of exports with a contribution of 1.24 lakh tonnes and Rs 450.96 crore. Value-added products such as spice oils and oleoresins and curry power also moved up.

As against 4,100 tonnes valued at Rs 318.26 crore exports of spice oils and oleoresins till February 2005 stood at 5,000 tonnes valued at Rs 412.14 crore.

Export of ginger increased to 12,200 tonnes as against the target of 7,000 tonnes while turmeric went up to 38,000 tonnes (31,000), coriander 32,250 tonne (18,000), cumin 12,950 tonnes (10,000), fennel 6,700 tonnes (5,000 tonnes), fenugreek 12,700 tonnes (10,000), spice oils and oleoresins 5,000 tonnes (4,800).

According to export sources, there is an acute shortage of ginger in the world market following crop failure in China. On the other hand, supplies from Nigeria and Ethiopia are inadequate. As a result, buyers are "running around covering at what ever price it is available and India is the only source now", they said. Currently, it is bought even at $2,500 a tonne.

Similarly, crop failure in other countries producing chilli, coriander etc and the availability of these items in India at competitive prices has pushed up exports, Mr Kannan said. Export of other items including black pepper, cardamom (small), celery, nutmeg and mace, vanilla etc., showed a decline.

Export of mint products showed a sharp decline from 10,100 tonne valued at Rs 381.65 crore to 5,675 tonne worth Rs 247.48 crore in April - February 2004-05.

Increased exports of low value items have raised the volume. However, there was no corresponding rise in value due to low unit value realisation, the Spices Exporters Association sources said. The quantum jump in chilli and coriander was due to non-availability of these items from other origins and because of crop failure in producing countries like China.

High prices in the domestic market coupled with a drop in production have pushed down exports of mint and mint products, they said.

In the case of chilli, coriander and turmeric, the country had a good crop with enough exportable surplus at competitive price, they pointed out. Despite making available an airfreight assistance of Rs 45 a kg, export of cardamom (small) declined from 610 tonne to 560 tonne.

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