Exports no longer as tasty as before

In focus/SPICES

Slump in international and domestic prices and weakening dollar have pushed the Indian spices to the edge.

India dominates the world spice trade with 48 per cent share in volume and 24 per cent in value. Exporters were facing tough times because of lower unit value realisation after appreciation of the rupee.

According to exporters, export growth has also slowed compared with last year as prices are under pressure following above average chilli and fenugreek harvests in producing nations such as China and Pakistan.

Prices of most spices have been on a downtrend since 2002. International price of black pepper (Malabar Garbled-MG -1) at New York has slumped to $1760 per ton at the beginning of December 2003, around 23 per cent lower from from $2270 per ton at the beginning of December 2002.

During the same period, price of hand picked clove has almost halved from $15210 to $7710 per ton. Even at the domestic level, prices witnessed a declining trend.

Black pepper price (NG-1) has declined to Rs 65.67 per kilogram as on December 6, 2003, from Rs 94.20 on December 7, 2002.

In the same period, price of ungraded cardamom small slumped to Rs 357.25 from Rs 460.47 per kilogram. Price of large cardamom declined to Rs 106.25 from Rs 151.25.

Price of coriander has fallen to Rs 26.25 from Rs 29.13 per kilogram, while cumin has fallen to Rs 73.13 from Rs 86.88.

The price of fennel declined to Rs 50 from Rs 53.75, fenugreek depreciated to Rs 16.13 from Rs 18.13, while the price of clove (Cochin) fell to Rs 210 from Rs 270 and clove (Nagarcoil) to Rs 180 from Rs 240 per kilogram.

Price of cinnamon and cassia declined from Rs 64 and 63 respectively to Rs 54.50 per kg for both.

Only few other spices and condiments experienced an appreciation in prices. The price of ginger (unbleached) at Cochin has improved from Rs 44.20 to Rs 69.17, while price of turmeric marginally increased from Rs 48 at Alleppey and at Mumbai from Rs 48.75 to Rs 57.75.

Price of chilli at Guntur has seen a marginal improvement at Rs 40.50 from last year's 39.25 per kg.

The export of spices from India during the first seven months of the current fiscal has touched 122,802 tonnes, valued at $206.13 million. This is against exports of $370.10 million for the whole of 2002-03.

According to the Spices Board of India, the highest exported item among spices and condiments was chilli at 34,000 tonne, valued at $32.87 million.

This was followed by turmeric at 18,000 tonne worth $14.38 million, pepper at 10,300 tonne valued at $19.44 million and coriander at 9,000 tonne worth $7.10 million.

Cumulative exports of spices such as tamarind, asafoetida, nutmeg, mace, vanilla, cassia, saffron touched 15,850 tonne worth $11.67 million. Cumin exports reached 4,200 tonne, valued at $6.67 million.

Exports of curry powder was at 4,000 tonne worth $6.72 million, while mint products including mint oil and menthol crystals was at 4,770 tonnes, worth $40.26 million.

Fenugreek export reached 3,950 tonne worth $ 2.01 million and other seeds including aniseed, bishops weed (ajwain seed), dill seed, poppy seed, mustard reported cumulative exports of about 4,950 tonne valued at $2.60 million.

Traders were expecting good crop arrivals by January or February 2004. This would help increase the competitive advantage in world markets, they said.

Exports of turmeric were expected to shoot up in January onwards as new crop will start arriving in the market.

Though India enjoys almost a monopoly in the world turmeric market, recently countries such as Myanmar and Vietnam have emerged as competitors.