Spices exports to cross $1 billion

To touch $10 billion by 2017.

The country's spices exports will cross $1 billion in the current financial year and touch $10 billion by 2017, according to V J Kurien, chairman, Spices Board.

Addressing a press conference, he said the US Food and Drugs Administration (FDA) was likely to open an office in India for ensuring the safety and quality of food items exported to the US.

He said the US secretary for agriculture had expressed his satisfaction over the functioning of spices processing units during his recent visit to the state, and added that FDA may specify some laboratories in the country for testing the quality of food items shipped to the US.

This would be beneficial for the export sector as quality standards were more stringent in the US. With Europe and the US accounting for 75 per cent of the country's total spices exports, ensuring high safety and quality standards were of utmost importance for the board, he said.

"We had problems in the export of chilli due to aflotoxin and Sudan red. But we rectified it and ensured the quality of our spices. The certificates issued by the board is now accepted the world over," Kurien said.

He added that the first Spices Park, targeted to make India a major hub for the export of processed spices, would open in Kerala's Idukki district.

The board has planned to establish 10 such parks across the country in order to enhance the production of processed spices, oleoresins and oils.

Of the world's total annual spice trade of 850,000 tonnes, India accounts for 44 per cent in quantity and 36 per cent in value.

The share of spices is 6-7 per cent of India's total agricultural exports. Exports have shown a spectacular growth in 2006 -07 at 373,750 tonnes valued at Rs 3575.75 crore ($792.95 million).

The quantity of spices exported has shown a compound annual growth rate (CAGR) of 9 per cent and the value realised has shown a CAGR of 14 per cent.