Spices exports losing flavour

China, Pakistan and Bangladesh take the centrestage.

Volume of spices exported from the country during April-August this year dropped 3 per cent y-o-y. The total quantity exported during the period was 1,40,231 tonne compared with 1,43,880 tonne in the same period last year, according to Spices Board of India.

However, value of exports saw a reverse trend. The country's earnings as export income rose 16 per cent to Rs 1,155.49 crore in the period under review from Rs 994.06 crore earned in the same period last year, as per the board estimate.

Sources in Spices Board said the marginal drop in total spices exports was on the back of a decline in exports of certain items such as chilli, coriander, Fenugreek, cardamom and nutmeg and mace.

They said the country was facing intense competition in chilli and coriander exports from countries like China, Pakistan and Bangladesh. In exports of most spices, it is the price war where the country is losing out to its competition.

Since the quality of most of the country's spices "� especially pepper, cardamom and nutmeg and mace "� is higher it is offering them at relatively higher prices. But this has become a handicap for exports of Indian spices given the present competitive environment.

On the coriander front, Mediterranean nations too are posing a serious challenge to the country. Meanwhile, China is emerging the strongest rival to India in spices exports as it has been stepping up production and marketing of spices such as pepper, chilli and ginger.

During May-July this year, the country offered ginger at higher prices, by a margin of $250-300 over the $1,000-1,100 a tonne range in which China offered the same spice.

Spices Board had targeted exports of 3,06,000 tonne valued at Rs 2,500 crore for the entire 2006-07, and 46 per cent of both "� the targeted quantity and value "� was achieved in the first five months of the financial year.

Posting a phenomenal 321 per cent rise in quantity and 278 per cent increase in value, the performance of cumin seed turned out to be the best in exports. A total of 13,500 tonne cumin seed, valued at Rs 94.30 crore, was exported in the period under review.

Chilli, too, shared a major chunk of the spices export basket at 44,000 tonne worth Rs 208.47 crore. But, the commodity, in fact, registered a dip of 15 per cent in the quantity exported when compared with the 51,919 tonne exported in April-August 2005.

Vanilla put up a stellar export performance, as the spice posted a whopping 297 per cent growth in quantity and 173 per cent rise in value at 71 tonne worth Rs 11.70 crore.

Although India controls almost 80 per cent of the global market of spice oils and oleoresins there has been a drop of 2 per cent in quantity and 4 per cent in value during April-August period. India has exported 2,440 tonne of the products at a total value of Rs 200.97 crore. Coriander exports plunged 30 per cent though the value realisation was almost at the same level at Rs 29.53 crore.

Total exports dipped by 3,382 tonne to 7,900 tonne. In fact, the country has been suffering a serious setback in coriander exports during the last couple of financial years.

During 2004-05, it had exported 33,750 tonne valued at Rs 82.66 crore, while the figures plummeted to 22,750 tonne and Rs 64.10 crore, respectively, in 2005-06. The performance during April-August this year also showed a falling trend. The same is the case with chilli.

Exports of chilli dropped 17.9 per cent to 1,13,250 tonne in 2005-06 from 1,38,000 tonne during the previous financial year.

The value too declined (19.1 per cent) to Rs 403.50 crore from Rs 499 crore in 2004-05. While pepper exports grew 48 per cent to 9,100 tonne valued at Rs 75.95 crore during April-August, curry powder and paste posted an impressive 21 per cent rise in quantity at 3,925 tonne and 26 per cent growth in value realisation at Rs 33.41 crore.

During the first five months, exports of cardamom (large), turmeric, Fenugreek, garlic, nutmeg and mace and mint products suffered a setback, while cardamom (small), ginger, celery and fennel registered growth.