The Hindu Business Line : Chilli pulls down H1 spices export

EXPORTS of spices from the country continued to show a declining trend as the shipments of commodities such as chilli, coriander, other seeds and cumin fell sharply during the first-half of the current fiscal.

Compared with the total exports of 1,86,493 tonnes valued at Rs 1,195.11 crore during April-September 2004, shipments in the same period in 2005-06 stood at 1,66,683 tonnes valued at Rs 1,050.13 crore. Thus, there was a drop of Rs 144.98 crore in terms of value, while in volume it was 19,810 tonnes.

Chilli, coriander, cumin, celery, fennel, fenugreek, other seeds and mint products declined, while others such as turmeric, ginger, garlic, nutmeg and mace, other spices, vanilla and value-added spices maintained their upward trend. Shipments of garlic increased rise from 571 tonnes valued at Rs 2.24 crore in April-September 2004-05 to 12,500 tonnes worth Rs 14.88 crore. Growing awareness about its medicinal qualities as "a remedy for a variety of conditions and diseases coupled with its use as a good flavouring agent and condiment is said to have pushed up its demand in the world market". India is the third largest producer of garlic after China and South Korea. Crop failure in other producing countries is cited as the reason for increase in Indian shipments.

The major competitor of India in the world chilli market - China - is reported to have had a better April-May crop, while its October-January crop is also said to be better than last year. Therefore, the major buyers of Indian chilli — Sri Lanka, Malaysia, Bangladesh, the US and the UAE — are waiting for the harvesting of the next chilli crop in China anticipating that the prices would fall further. This has led to the decline in Indian export of chilli. Similarly, production of other spices, which had shown a good export performance last fiscal, is said to be good in other origins this year, according to sources at the All India Spices Exporters Forum. Production of these spices in India is also expected to maintain last year's level, they said.

Exports of turmeric in which India continued to maintain a monopoly, stood at 27,800 tonnes in the first half of 2005-06 as against 23,829 tonnes in the same period last fiscal, Spices Board sources said.

Spice oils and oleoresins continued to grow. However, there has been a drop in the unit value of this product. Curry powder/paste/condiments has moved up marginally while the export of mint products continued to decline this year also.

Availability from other origins at low prices has pushed down the export of other seeds viz., mustard, aniseed, bishops weed (ajwan seed), dill seed and poppy seed, to 4,700 tonnes from 8,292 tonnes.

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