Business Standard

Cheap spices abroad pull exports down

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George Joseph Kochi

The growth in spices exports has decelerated in the past few months due to stiff competition from China and Nigeria. These countries are offering spices at lower price than India.

In the first seven months of the current financial year, 68 per cent of the export target has been achieved. However, looking at the slowdown, achieving the remaining might not be easy. The export target for this year is fixed at 465,000 tonnes valued at Rs 5,100 crore.

During April-October, 317,800 tonnes of spices and spice products valued at Rs 3,685.3 crore ($805.1 million) were exported as against 299,250 tonnes valued at Rs 3,260.1 crore ($1,125 million) in the same period last year.

 

Pepper exports dipped 14 per cent, cardamom (small) 25 per cent and export of nutmeg and mace decreased 58 per cent during the period. Export of cardamom (large), turmeric, cumin, celery, fenugreek and mint products also fell, according to the data. But, the export of value-added products like curry powder and spice oils and oleoresins increased.

Exports of garlic increased a whopping 127 per cent in volume and 238 per cent in value at 15,250 tonnes. Exports were badly affected during September-October and are expected to be low this month also due to lean season in the production of major spices.

The declining trend is mainly due to India’s failure to cope up with the aggressive export strategies, especially on the price front, by other countries.

Like in pepper exports, India is unable to compete with prices offered by Vietnam, brazil and Indonesia. During October, Indonesia shipped 6,500 tonnes of pepper, Brazil 2,900 tonnes, Vietnam 6,296 tonnes, while India exported only 1,500 tonnes.

In case of ginger, China and Nigeria are real threat to India as their prices are very low compared to that offered by India.

According to traders, exports would be on track by next year once the fresh crop reaches the market. India and Vietnam will be the centres for pepper exports by January -February. Likewise, chilli exports would improve by February. The continuous rain for the last seven-eight months also affected the production and processing of various spices and therefore, the quality was also low.

The new year is expected to be promising as the fresh crop will attract more overseas demand. When harvesting begins in India, it is off season for other countries like Brazil and Indonesia. So, exporter expect increase in demand during the summer season.

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First Published: Nov 26 2010 | 12:34 AM IST

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