Focus on Value-Added Products to Boost Spices Export.

Mumbai: India's spices exports are likely to rise 10% in FY11, buoyed by a revival in world economy that is boosting demand and due to a focus on value-added products, said a top Spices Board official.

“Now we also export a lot of spice oils and oleoresins, (and) curry powders.

So those are the things which have led to the increase in exports,” VJ Kurian, chairman, Spices Board of India, said .

Of the country's total spices exports of 1,93,875 tonne during April-July, spice oils and oleoresins constituted 2,540 tonne, according to the board's data.

While the total spices exports during the period increased 12% on year, that of the value-added products rose 7%. In 2009-10, India is estimated to have exported 5,02,750 tonne spices, compared with 4,70,520 tonne the previous year, according to the data. Indian spices are exported to 135 countries.

Appreciating rupee may certainly impact exports but we hope to overcome that over a period of time. The Indian rupee has strengthened 2.2% so far this calendar year against the dollar.

Kurian said there has been a reversal in the declining trend in pepper exports as the key producing countries have sold most of their crop even as there is good demand for the spice. Pepper exports are expected to touch 22,000-25,000 tonne by the end of year 2010-11. In 2009-10, the country's pepper exports had fallen 22% to 19,750 tonne.

Vietnam is the world's largest producer of pepper, followed by Indonesia and Brazil. On the rise in pepper imports, Kurian said it is natural as India is emerging as a spice processing hub. In 2009-10, the imports are estimated to have surged 63% to 17,500 tonne.

Major imports are from Sri Lanka, Indonesia, Madagascar and Vietnam.

Kurian foresees chilli exports continuing the rise as there is good demand from Malaysia, Sri Lanka and Thailand.

“Chilli exports may rise 8-10%.... Crop failure in China and Pakistan is diverting world demand towards India,” said Kurian.

Source : financialexpress.com