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Continuing the uptrend of recent months, spices exports registered a 19 per cent growth in value and four cent growth in volume during the first 11 months of the current fiscal. The growth was even more significant in dollar terms, rallying 24 per cent.
What is most evident from the export statistics is the slow and steady fall in pepper in the spices export basket over the years. The export of pepper which used to account for over 50 per cent of the country's total spices export basket by value, now accounts for just over five per cent.
The well diversified and multi-spices export basket is far more suitable for the contemporary global trade since it can withstand crisis in individual spices and still maintain a steady and sustained growth over the years, said Mr V.J. Kurian, Chairman of the Spices Board. While spices exports have become strong and resilient, crisis in individual spices has become recurrent and a more periodic phenomenon: be it from the changing weather patterns, global warming or market related crisis.
Important development
What is even more noteworthy is the fact that it is the value-added spices which have taken over the major mantle in the country's spices export basket, Mr Kurian said. While mint product exports constituted the most significant component in the export basket, accounting for over 25 per cent of the total value, spice oils and oleoresins accounted for over 13 per cent and curry powder exports for close to three per cent. The efforts of the Spices Board to promote the export of value added spices at the cost of raw spices exports have begun to pay rich dividends, Mr Kurian pointed out.
Chilli export accounted for close to 23 per cent of the export basket. Chilli export emerged as another major component in the spices export basket, relegating pepper to the background. However, both chilli and pepper are also major components in the value-added spices exports, sources in the spices trade said.
A total of 4,71,165 tonnes of spices valued at Rs 6,030 crore was exported from the country during April-February. The foreign exchange realisation was $1.323 billion. Spices exports have already surpassed last years level of Rs 5,560 crore.
Targets surpassed
The export of spices from India between April-February period have already exceeded targets in terms of quantity and value set for the 2010-11. Against an export target of 4,65,000 tonnes valued at Rs 5,100 crore set for the financial year, the achievement so far has been 4,71,165 tonnes in quantity valued at Rs 6,030 crore. It has already achieved 101 per cent of the target in terms of quantity and 118 per cent in terms of earnings. While the foreign exchange earnings target was set at $1,125 million, it has already crossed $1,323 million by the end of February.
Mr Kurian said that spices exports have grown stridently from around $580 million levels in 2005-06 and he expected to touch $1.4 billion levels by the end of the current year.
Among the value-added spices, export of spice oils and oleoresins and curry powder have grown in volume and value during the 11 month period. Export of mint products increased in value only. Export of chillies, ginger, fennel, garlic and some other spices have also shown a growth in volume and value.
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