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Spices Land on the Receiving End Now |
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KOCHI: India has been a land of spices since ancient times. But when history take a U turn, the country imports spices and over the years the quantity had been increasing. Low production within the country, cheaper price outside India, scope for value addition and high labour cost are cited as major reasons for the phenomenon.
During 2013-14, around 1.30 lakh tonne of spices worth Rs 2,905.14 crore was brought into the country. In 2009-10, 1.07 lakh tonne of spices valued at Rs 1,100.5 crore was imported to India.
In a span of four years, 23,300 tonne spices was imported to India. In value terms, it’s an increase of Rs 1,805 crore. Major spices being imported are ginger, cassia (Chinese Cinnamon), pepper, poppyseed and clove. These are imported from countries like Myanmar, Vietnam, Indonesia, Guatimala, Nigeria and Ethiopia.
According to the Spices Board, the country’s total exports in April-September 2014 stood at 421,570 tonne, valued at Rs 6,963 crore.
“In India, the price of spices is higher compared to many other countries. This is the one big reason that has led to massive imports. Going forward the quantity being imported will only increase. Global spice sector is now dominated by South Asia (over 55 per cent total production). India is a major production house of spices. Almost 90 per cent of the spices produced in the country is being consumed within. This has also led to increased imports as large scale value addition is taking place in the spices sector in the country,” said P J Kunjachan, MD, Arjuna Natural Extracts.
The Foreign Trade Policy prescribes no quantitative restriction on import of spices except for items like ‘seed quality’ spices, fresh ginger and poppy seed. The import tariffs have also been brought down. Under FTA with Sri Lanka, duty-free import of spices is permitted. Duty free imports are also allowed under the Advance Authorisation Scheme for value addition and re-export.
“Raising labour cost and shrinkage of land are the major reason that led to increase in prices of spices and ultimately resulted in increased imports,” a Spices Board official said.
Source : newindianexpress.com
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