Embargoes faced by Chinese ginger exporters from Japan, and Pakistani chilli exporters from European Union are signs of increasingly stringent quality standards in most importing countries, industry experts said.
Exchange rate advantage
The rupee falling against the dollar is the best thing that has happened to spices exporters so far in 2008-09, exporters said.
"The trend in exchange rate of the rupee at present is nearly the reverse of what was happening in the same period during 2007-08," said Sushma Srikandath, chairwoman, All Indian Spice Exporters Forum.
The weakening rupee will definitely benefit spice exporters, she said. Exchange rate fluctuations will help in gaining a temporary advantage, but the key factor is quality and reliability, she said.
Quality norms
Spices Board Chairman V J Kurien also emphasised quality as a long-term strategy for sustaining India's leadership in the global spice trade. Measures like mandatory sampling and testing of chilli export consignments implemented by the board have been appreciated in countries like US and those of European Union region, he said.
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Quality of Indian spices is gaining global recognition at a time when competing countries like China are facing serious setbacks in this regard, an exporter said. Japan, a major buyer of ginger from China, has suspended buying the commodity from that country due to presence of pesticide residue and other contaminations, he said.
Chinese commodity exports to US have also faced similar problems, he said. Indian exporters have the potential to make major forays into markets like Japan, Kurien said.
Ginger grown in the northeastern states of the country is organic, and the board is taking steps to bring this to the attention of buyers in countries like Japan, he said.
Outsourcing hub
The domestic spices industry is focusing on making India the global hub for processed spices, Kurien said. Board's proposal to set up industrial parks dedicated to spices is a step in this direction, he said.
Malaysia imports chilli from India for processing and then, re-exports it to other countries. Similarly, China makes value-added products from mint imported from India and re-exports it, he said.
"Our (Spices Board's) aim is to provide world-class facilities to enable much of this value-addition in the country itself leading to substantial increase in export income," Kurien said.
Chilli accounted for 47 per cent of total quantity and 25 per cent value of export revenue from spices last year.
India exported 444,250 tonnes spice worth Rs 44.35 billion in 2007-08, of which mint contributed 29 per cent of total value.
Board plans to set up spices parks in states like Andhra Pradesh, Tamil Nadu, Kerala, Madhya Pradesh, Rajasthan, Uttar Pradesh, and Gujarat.
The parks, expected to be completed during the 11th Five Year plan, will provide common facilities for testing and grading, thus ensuring uniform quality of goods exported.
Customising Products
Indian spice exporters are also looking to customise products for a variety of culinary traditions and practices.
Customising spices for a variety of culinary traditions is a tangible proposal, said Navas Meeran, managing director, Eastern Condiments-India's leading branded spices and curry powder exporter.
Availability of raw material, skilled manpower, and robust manufacturing base make India an ideal place for setting up such ventures, Meeran said.