India’s spices exports this financial year are expected to rise seven per cent from 502,750 tonnes the previous year due to rise in global demand, a trade ministry official said on Thursday.
Total revenues from spices exports are seen rising 15 per cent from Rs 5,560 crore the previous year, said the official, who handles spices exports.
“There is good demand for our value-added spice products from countries like the US, Malaysia, Singapore, Dubai and Germany, which is pushing overall exports higher,” he said.
“Chilli will continue to be the leading contributor in the country’s total spice exports in terms of volume and revenue,” said the official. He said chilli exports are likely to exceed the target of 200,000 tonnes this financial year. The official did not give any numbers on the rise expected.
He expressed concerns there could be a drop a chilli output and its quality due to unexpected rains in main growing states such as Andhra Pradesh, Tamil Nadu, and Karnataka. According to industry estimates, Andhra Pradesh’s chilli output is seen falling 25 per cent on year this crop year (July-June).
The country’s chilli exports in April-October rose 26 per cent from a year ago to 141,000 tonnes and generated revenues of Rs 865 crore, Spices Board data showed. Asked about the drop in exports of turmeric and pepper, the official said, “High prices of turmeric and pepper amid low stocks in the domestic market is the main factor for weak exports.”
In April-October, India’s exports of turmeric declined 14 per cent on year to 29,500 tonnes and of pepper fell 14 per cent to 10,500 tonnes.
This year, spot prices of turmeric rose to record high of over Rs 17,000 a quintal due to low stocks this season.
On Thursday, black pepper and red chilli prices rose by Rs 100 a quintal each in the national capital on Thursday on increased buying by stockists on the back of pick up in domestic and export demand. Fall in supplies from producing regions also supported the rise in prices.
Black pepper prices rose by Rs 100 to conclude at Rs 22,200-22,300 a quintal. Red chilli prices remained higher by Rs 100 to settle at Rs 6,500-11,700 a quintal. Traders said increased buying by stockists on the back of pick up in domestic and export demand against fall in supplies from producing belts, mainly pushed up pepper and chilli prices on the wholesale market.
