Spices Board joins retail bandwagon

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

The company christened - Flavourit Spices Trading - will focus on selling a range of spices like mint, chillies and <i>jeera<i>, under the brand name Flavourit.

"Products will first be introduced in Delhi in a couple of months. We are negotiating with Mother Diary to sell Flavourit," said Kerala's minister of state for commerce Jairam Ramesh.

An initial investment of Rs 10 crore will be made by the Spices Board to set up the company, which will be based in Cochin but have presence throughout India. In a few years time, a private company could be roped in as a partner of the company, added Ramesh.

The company will have its own supply chain to package and market different spices, especially produced by small growers across the country. Services of the India Brand Equity Foundation will also be taken for promoting the product in international markets, where it would be positioned as a premium product.

"Contrary to the usual perception of pepper and cardamom being the major exported spices, it is mint and chili, which constitute more than 50% of the export basket of the commodity. We have drawn up plans through which the Spices Board will promote the value addition of non traditional spices."

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

As per the plans drawn up by the board, spice parks will be set up in places across the country. Two spice parks will be set up for black pepper and cardamom in Idduki district in Kerala while one each in Lucknow for mint and Guntur for chilli. More over, a spice park will be set up in one of the north eastern states for promoting organic ginger and turmeric.

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