The Hindu Business Line : Chilli exports gain on global shortage

Kochi, Dec. 28 Short supply in the world market has led in increase in exports of chilli during April-Nov 2007 and if the current trend is any indication, the shipments of the commodity would cross the set target for the current fiscal, while in terms of value it has already crossed the target.

Export of spices and spice products from India during April-Nov this year recorded a rise of 26 per cent in terms of value and 20 per cent in terms of volume over the figures of the corresponding period of 2006.

In dollar terms, the achievement was to the tune of 42 per cent.

Total shipments of spices and spice products during the period are estimated to be 2,86,302 tonnes valued at Rs 2,840.03 crore as against 2,38,334 tonnes valued at Rs 2,255.13 crore during April-Nov 2006.

Pepper & chilli

There has also been a substantial increase in the exports of pepper which has increased to 24,250 tonnes during April-Nov 2007 valued at Rs 351 crore against 18,405 tonnes worth Rs 181.49 crore in the corresponding period last year.

Similarly, shipments of valued added products such as curry powder/paste/condiments, mint products, spice oils and oleoresins have also witnessed tangible increase both in value and volume.

Chilli has shown a record performance with its exports touching 1.28 lakh tonnes as on November 30 as against the official target of 1.35 lakh tonnes for the current fiscal, while in terms of value it has already crossed the target of Rs 675 crore and reached Rs 696.37 crore.

Despite an increase in the unit value to Rs 54.40 a kg from Rs 51.50 a kg in the corresponding period last year, the export has shot up on short supply from other origins, official sources told Business Line.

During April-Nov last year, the total shipments of chilli stood at 82,221 tonnes valued at Rs 423.41 crore.

According to the sources, the demand from the traditional buyers like Malaysia, Sri Lanka, Indonesia and Bangladesh is on the rise.

The export of chilli accounts for 46 per cent in terms of quantity and 26 per cent in terms of value of the total export of spices from India.

Currently, India is the main source of red chilli for international markets.

After the lean production of last year, the new Chinese crop will reach the market only by October. Pakistan, the other producer, may require a large portion of their September crops for internal consumption, they said.

The present crisis in Pakistan would also impact its exports.