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India suffered a setback in the export of spices, especially chilli - the single-largest exported spice - ginger, turmeric and garlic. Overall, shipment during the April-June 2013 period dropped nine per cent at 177,625 tonnes against 195,248 tonnes in the corresponding period of the last financial year. This is mainly because of the economic slowdown persisting in major markets such as Europe and the US, affecting the shipments.
Leading exporters told Business Standard that the off-take by Europe has fallen drastically and this will continue in the remaining months of the current financial year, causing a drop in the overall export. High prices of Indian spices, especially pepper and chilli, also keep importers from the Indian market. Rise in local demand keeps the prices high in India, whereas other major producing countries offer lower tags than India.
However, on value terms, India recorded a 13 per cent growth. This is because of the rise in the prices of major spices such as black pepper, coriander and value-added products. Total export kitty increased to Rs 2,711.48 crore during April-June this year from Rs 2,398.52 crore in the year-ago period. In dollar terms, the growth was nine per cent at $484.11 million.
According to the Spices Board's latest exports data, it is chilli which suffered the most as the cumulative volume dropped 19 per cent. Chilli exports were 65,500 tonnes during the period against 80,676 tonnes in the year-ago period. On value terms, the drop was 12 per cent at Rs 558 crore during the first quarter of FY14, against Rs 635.18 crore in the year-ago period. This is mainly due to the drop in demand across the globe, especially in Europe and in the Gulf region, exporters said.
They pointed out that most of the spices are facing serious problem on the export front as European and US buyers are showing less interest in importing spices from India. In the case of ginger, the drop was 53 per cent, while 30 per cent decrease was reported in turmeric. Ginger export was just 3,700 tonnes in the first quarter of FY14, against 7,870 tonnes in the year-ago period. In the case of turmeric, the figures were 17,500 tonnes and 24,982 tonnes, respectively. Garlic dropped 56 per cent at 3,750 tonnes valued at Rs 16 crore in the first quarter of FY14, against 8,599 tonnes valued at Rs 20.65 crore reported in the year-ago period.
Notably, outstanding growth was recorded in the case of nutmeg and mace and cardamom (small) during the period. As much as 1,200 tonnes of nutmeg and mace were shipped during the period, against 407 tonnes in the year-ago period. On the other hand, 505 tonnes of cardamom were shipped in the first quarter against 198 tonnes during the Q1 of FY13.
In the case of spice oils and oleoresins, 2,815 tonnes valued at Rs 373 crore were exported against 1,851 tonnes valued at Rs 283 crore, recording an increase of 52 per cent and 32 per cent, respectively. As much as 4,400 tonnes of pepper valued at Rs 175 crore were exported, showing an increase of 12 per cent in volume and 10 per cent in value.
A sharp rise in the prices of coriander lifted the value of exports by 65 per cent, although volume of exports increased just three per cent. Ten thousand tonnes of coriander valued at Rs 80.78 crore were exported against 9,735 tonnes valued at Rs 48.88 crore. Export of celery recorded an 87 per cent increase, while that of cumin increased 25 per cent, according to the Spices Board data. About 4,550 tonnes of curry powder/paste were also exported, earning Rs 72 crore in the first quarter of FY14.
