The Hindu Business Line : Chilli exports touch all-time high

A GOOD chilli crop last year and a consequent availability of large exportable surplus in the country when the crop in other major producing countries declined, have resulted in a boom for chilli exports touching an all-time high of an estimated 1.3 lakh tonnes valued at over Rs 480 crore in 2004-05.

The country's chilli exports have not ever crossed 82,000 tonnes in the past, Mr S. Kannan, Director (Marketing), Spices Board, told Business Line on Saturday. The highest ever shipment in the past of the commodity from the country, which started exporting it in 1960-61 with 8,364 tonnes valued at Rs176 crore, was in 2003-04 with 81,500 tonnes valued at Rs 355.11 crore. In 2002-03, it was 81,022 tonnes valued at Rs 315.14 crore. From 1995-96 onwards till 2001-02, the exports were just dwindling between 56,000 tonnes and 70,000 tonnes and before this period, it had been below 30,000 tonnes.

He said that the chilli production in 2004-05 is estimated around 12 lakh tonnes and unlike in the past, about 13 per cent of the production has gone for exports. It is estimated that the production in 2003-04 was 10,60,345 tonnes of dry chilli from an area of 8,84,183 hectares as against 8,46,160 tonnes the previous year. In 2001-02 the country had the highest production of 11,13,090 tonnes from 8,81,290 hectares.

The earnings from chilli exports last fiscal would have been more but for the drop in the unit value realisation, which compared to Rs 44.81 a kg in 2003-04 was Rs 36.37 a kg in 2004-05.

India is the only country rich in many varieties of chilli with different quality factors. While consumption of chilli is the highest in India, maximum export is also from here. Chilli continued to be the major item of export in the world in terms of quantity, he said.

In India, chillies are grown in almost all states of the country and the major growing states in terms of production are Andhra Pradesh (49 per cent), Karnataka (15 per cent) Orissa (8 per cent), Maharashtra (6 per cent), West Bengal (5 per cent), Rajasthan (4 per cent) and Tamil Nadu (3 per cent). The average productivity in the country is around 1,112 kg/ha while Andhra Pradesh tops with the maximum productivity of 1,948 kg/ha followed by Punjab (1,607 kg/ha). The lowest productivity is in Himachal Pradesh (270 kg/ha).

India has immense potential to grow and export different types of chillies required by various markets around the world, he said.

The estimated current world import of chilli is around 1.5 lakh tonnes i.e., about 23 per cent of total world import of spices.

In the 1980s, around One per cent of the total production was being exported and it was mainly because of the high domestic consumption. And there after it has been gradually moving up to 9 per cent and last fiscal to 13 per cent of total production.

The other main exporters the commodity are South Africa, Malawi, Zimbabwe, China, Pakistan and Mexico.

These countries export mostly low or medium pungency varieties such as Indian S4 chillies, Tiensin Chinese chillies or Pakistan Dandicut chillies.

Malawi, Zimbabwe and Uganda export limited quantities of the highly pungent East African Birdseye type, and China exports some high pungency types (Fukien). Europe, the US and Far East markets such as Sri Lanka, Malaysia, Korea and Japan are the major export market for chillies.

India faces competition mainly from China and Pakistan which offer chillies at low prices in international markets, Mr Kannan said.

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