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In the 2010-11 fiscal, a significant feature of spices export was the rise in shipments of value-added products such as spice oils and oleoresins. They made up over 15 per cent of the export basket. Another feature of exports was the falling contribution of pepper from 50 per cent of the value at one point of time to just five per cent now.This is a clear indication of how significant value-added spices is. With changing food habits, increasing demand and rising purchase value of consumers, the consumption of value-added spices is set to increase.
Compulsions of economy that need a husband and wife to go to work, families making it a habit to eat out at least once a month are also seen as a hope for the demand for value-added spices to increase.
With India being a leader in production of various spices, there are opportunities to tap the availability to the country's advantage. It is one of the reasons why India leads in mint oil production.
In the case of pepper, value-addition can be in the form of pepper powder or pepper in brine. Value addition to curry leaves can be done by preparing curry powder as also turmeric or chilli powder. Ground spices is another opportunity.
Many value-added spices are in circulation and they impart a special taste to food preparations. A very large list of such spices and new varieties are added every year.
Entrepreneurs looking to get into the business of value-added spices can get technical know-how from the Central Food Technological Research Institute, Mysore. Though there are established players in the value-added spices market, their reach is limited in a vast country like India. Thus, there is a scope for small and medium players to operate in rural and semi-urban areas. According to the Ministry of Food Processing Industries, Rs 12 lakh is required to start a small value-added spice unit. This includes for land and building, machinery, raw materials, preliminary and post-operative expenses. Financial assistance in the form of grant is available from the Ministry of Food Processing Industries. A promoter will have to chip in 31 per cent of the project cost, while the rest can be got as debt.
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