 "Spices Board banks on value-added products amid struggling exports")
With conventional spices from India unable to post considerable growth in exports, the Spices Board has gradually turned towards value addition in the form the brand 'Flavourit'. The board aims to partner with private players to sell premium spices, value-added products such as spice chocolates, mouth fresheners and cosmetic products in international markets.
Flavourit Spice Trading Ltd (FSTL), a Spices Board enterprise, has invited expression of interest (EoI) from prospective investors to take up franchises for 'Spices India' signature stalls in overseas markets, though responses so far have not been so encouraging.
India's spice production has remained at around six million tonnes during the past five years. The board also opened its first signature outlet 'Spices India' at Delhi early this year.
"We have formed a company Flavourit to develop and promote value addition in Indian spices and invited investors to sale in global as well as in domestic market. However, so far no one has come forward to join hand with the board," said A Jayathilak, chairman, Spices Board India.
The poor response is being attributed to unstable production and increased competition from other producing countries such as China, Indonesia, Turkey, Spain and Pakistan.
Flavourit has been initiated by Spices Board of India to promote quality spices. It is a high-end brand of spices that appeals and caters to a niche audience, which places more emphasis on quality rather than price. The enterprise offers an array of products ranging from spices and spice extracts to cosmetic products such as soaps, face washes, cream and so on, apart from the spice-flavoured chocolates.
The board has opened its first signature outlet at Delhi and also invited investors for franchisee in India and abroad. According to spices industry, one of the reasons behind poor responses is several players in the industry have their own brand and they are already selling value added products in the country as well internationally.
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"The products will be sold through signature stalls set up in overseas market in partnership with private investors. The stalls are part of the board's efforts to bring about systematic diversification and sustainability of the industry," said Jayathilak.
It is expecting that these outlets would help the board increase access in global markets and further promote the popularity of Indian spices on international front.
Prakash Namboodiri, chairman of the All India Spices Exporters Forum (AISEF) said, "The idea of the board is good but many companies already selling value added spices products in India and abroad."
While India may be enjoying top position in global spices market with nearly 45 per cent share, rising cases of adulteration and pesticides issues are posing a threat to the country's standing. Several importing countries have already raised complaints for qualities and mixing especially in jeera (cumin), chilli and pepper. Also importing countries have warned India to serve quality products and tighten the rules for India or lose business.
"It is true that adulteration and pesticide issues are major aspects governing the food industry and trade market. The food safety and sustainability are the key words ruling the global market. All importing countries have their own stringent food laws and regulations to maintain quality standards of products imported to ensure the safety and health of their citizens and the exporters have to abide with these rules," said A Jayathilak.
According to Jayathilak, there persists a continuous international demand for the Indian spices owing to its superior quality and India has been able to maintain its good image in the world market by taking rapid initiation to sort out the alerts received from the importing countries.