Kochi: To increase export realisation from spices, the state-run spices board is planning to focus its attention on South American countries and former CIS, spices board officials said here on Tuesday.
While, CIS countries currently buy spices from Russia and Europe, South America procures spices from the US market, board chairman VJ Kurian said. “If we can directly sell to these nations we can improve our margins considerably,” he added.
India exports about 180 varieties of spices to over 150 countries around the world. Mint products account for bulk of spices export from India , followed by chillies, oils and oleoresins and pepper.
East Asia with 41% (in value terms) is the major buyer of Indian spices followed by the US (21%).
The economic down turn has forced many countries to look at cheaper options but they don’t compromise on quality, Sushma Srikandath of AVT McCormick, one of India ’s leading spices exporters said.
India needs to convince them (importers) that it can meet the highest regulatory requirements on food safety, she added.
Spices board is setting up six new spices evaluation laboratories to meet the stringent quality standards set up by Europe and US. The board also provides financial assistance to the exporters to adopt hi-tech processing facility such as Cryo-grinding, sterilization, steam washing, super critical fluid extraction and other advanced systems in processing and testing.
Spices board is also opening ‘Spices Parks’ in major producing centres to assist in value addition, packing and branding, Kurian of Spices Board said.
Spices board has set a target of $10 billion exports by 2017 through value addition and increasing its share in organic spices.
In 2002-2003, India ’s total spices exports was 264,107 tonne valued at Rs 2086.71 crore ($431.45 million) and by 2008-09 exports touched 470,520 tonne valued at Rs 5300.25 crore ($ 1168.40 million). The world trade of spices is estimated at 850,000 tonne valued at $2,200 million and India has a 44% share in volume and 36 % in value.
Officials said the country’s spices production needs to grow at an annual rate of 20% and increase the share of value-added spices to reach the target of $10 billion worth spices exports by 2017, sources said. The quantity of spice exported has grown at a compound annual rate of 6% and value realizations have risen at 19% CAGR in rupee terms, board sources said. In.dollar terms the growth rate was at 6%
Source : Financial Express