Spices export rises on demand from East Asia

The Financial Express
New Delhi, 21 June 2010
Spices export rises on demand from East Asia
The East Asian countries have helped India ’s spices sector achieve an impressive export gains in the fiscal ended March 31, 2010 , despite recession in the other parts of the world. In 2009-10, spices exports rose by 7% in terms of volume and 5% in value when compared to the previous fiscal. The performance of 5,02,750 tonne valued at Rs 5,560.50 crore ($1173.75 billion) exceeded the target for the fiscal by 16% in volume and 24% in value. The achievement is commendable considering the fact that the world economies have still not come out of recession, Spices Board chairman VJ Kurian said. The board has set an ambitious target of Rs 6,000 crore ($1.3 billon) for this fiscal, he added. Exports of spices during 2008-09 stood at 4,70,520 tonne valued Rs 5,300.25 crore. Spices exports registered 40% and 25% growth in April and May 2010, respectively, he said. The exports to Malaysia at 8% and China at 7% helped the spices sector to sustain growth, board sources said. Exports to the Asian bloc have increased by around 15% annually in the last four to five years, sources said. India exported spices to 140 countries in 2009-10. Of these, the US leads with around 16%, Malaysia coming second with 8%, China (7%), UAE (6%) and UK accounting for 5%. The slowdown in major consuming markets such as EU and US have adversely affected export of value added spices. In the export basket of spices and spice products, spice oils and oleoresins including mint products like mint oils, menthol crystals, and menthol powder contributed 34% of the total export earnings. Chilli contributed 23% followed by cumin 10%, turmeric 7%, and pepper 6%. India exported a total quantity of 19,750 tonne of pepper valued at Rs 313.93 crore in 2009-10 as against 25,250 tonne valued at Rs 413.74 crore of 2008-09, a decline of 22 % in volume and 24 % in value. Imports of pepper during the fiscal was at 17,500 tonne, traders said. Export of cardamom (small) from India in 2009-10 was at an all time high in terms of value. India exported 1,975 tonne of cardamom valued at Rs 165.70 crore as against 750 tonne valued at Rs 47.27 crore in 2008-09, an increase of 163 % in volume and 251% in value. Chilli exports were up by 19 % in value terms and was estimated at 2, 04,000 tonne valued at Rs 1291.73 crore as against 1, 88,000 tonne valued at Rs 1080.95 crore in 2008-09. Fall in Chinese output helped India register impressive gains in chilli exports, traders said. Export of turmeric hit an all time high in terms of value. India exported 50,750 tonne of turmeric valued at Rs 381.23 crore as against 52,500 tonne valued at Rs 248.58 crore. In 2009-10, the average domestic price went up to Rs 127.47 per kg as against Rs 92.12 per kg in 2008-09. Export of spice oils and oleoresins has registered a slight decline in 2009-2010 as compared to last year and the export has been 6,750 tonne valued Rs 708.75 crore as against 6,850 tonne valued at Rs 720.50 crore of 2008-09. Mint products are the second largest product in the export basket accounting for 21 % of the spices export. Export of mint products in 2009-10 has been 19,000 tonne valued at Rs 1189.72 crore as against 20,500 tonne valued at Rs 1420.25 crore in 2008-09.