Spices Board floats company to get into retail

The commerce ministry-promoted Spices Board is getting into retail by floating a company to market spices in India and abroad.

Christened Flavourit Spices Trading Ltd, the company will focus on selling a range of spices like mint, chilies and cumin under the brand name of Flavourit.

"The board has applied for registration of Flavourit Spices Trading Ltd. Its products will first be introduced in Delhi in a couple of months. We are negotiating with Mother Diary for selling the products," said Minister of State for Commerce Jairam Ramesh.

The board will invest Rs 10 crore to set up the company, which will be based in Cochin and have a pan-India presence. Ramesh said a private company could be roped in as a partner in a few years.

The company will have its own supply chain to package and market different spices, produced by small growers across the country. Services of the India Brand Equity Foundation will be taken for promoting the products in the international market.

Spice exports during 2006-07 registered a growth of 33.74 per cent at $793 million as against Rs 592.90 crore last year. The commerce ministry has set an export target of $878 million for this financial year.

"Contrary to the perception that pepper and cardamom form major chunk of spices' export, it is mint and chili which constitute more than 50 per cent of the export basket of the commodity. We have drawn up plans under which the Spices Board will promote non-traditional spices. Till now, the board has been extensively focusing on black pepper and cardamom," said Jairam Ramesh.

Out of the total spices' exports in 2006-07, the share of mint and related products was $244 million, while chili's share was $177 million.

According to the board's plans, spice parks will be set up across the country. Two spice parks will be set up for black pepper and cardamom in Idduki district in Kerala while one each is planned in Lucknow and Guntur, for mint and chili, respectively. One spice park in a north-eastern state would promote organic ginger and turmeric.

In addition, 65,000 hectare of pepper plantations and 45,000 hectare of cardamom plantations in Kerala will be replanted.

"Pepper re-plantation will cost Rs 350 crore and cardamom Rs 200 crore," said Jairam Ramesh.