Spices Board eyes $3 bn from exports by 2017

Quality and value addition to give impetus to the growing exports, according to officials

Union Commerce Minister Nirmala Sitharaman had recently said that it was high time the performance of various boards, which were set up to boost exports, were reviewed given that many of them were not performing as expected.

However, Spices Board seems to be an exception.

Set up to develop and promote Indian spices worldwide, the Spices Board has initiated various programmes to improve the quality, value addition, grading methods, upgradation of processing techniques, and storage facilities, among others.

These measures have been giving good results. Spices exports from India touched Rs 3,976.65 crore ($626.81 million) in the first quarter of 2015-16, compared to Rs 3,059.74 crore ($511.22 million) in the year-ago period, a 30 per cent increase. During the first quarter of the current financial year, 215,215 tonnes were exported, compared to 213,443 tonnes a year ago.

In FY15, a total of 893,920 tonnes of spices and spice products valued at Rs 14,899.68 crore ($2.43 billion) were exported, compared with 8,17,250 tonnes worth Rs 13,735.39 crore ($2.27 billion) in FY14.

"The substantial increase in exports is the result of market promotion activities by the Board to promote Indian spices globally," said Spices Board chairman A Jayathilak.

Last year, exports were worth $2.4 billion, which the Board expects to touch $3 billion by 2017. At present, India exports 52 kinds of spices.

The Spices Board wants to raise the share of value addition, which grew from 10 per cent in 1987 to 52 per cent last year. The target is to make it 100 per cent in 20-25 years.

Rejection levels from the European Union dropped to 16 consignments last year from 180 consignments in 2010-11. In the next two years, the target is to bring it to zero.

"Due to stringent measures and testing, we could bring down the rejection rates. Our aim is to make to zero in two years," said Jayathilak. He said his team checks the entire supply chain because contamination can happen anywhere.

The samples are routinely sent to foreign labs and the results are compared to the tests in India. All the labs of the Board are internationally accredited.

While the traditional markets remain stagnated, Latin America and Africa markets are growing fast.

The Board recently opened two stores in Delhi and two in Kerala. It plans to increase the number of stores through the franchisee model. Jayathilak, however, declined to say how many stores would be added.

"We are not here to make profit. We are a statutory body and not a company. We are here to regulate and promote spices," said Jayathilak, adding the Board is also talking to major chocolate companies, including Amul. "We can provide the technical know-how and it is up to them to take it forward. We don't want to get into manufacturing."

THE ECONOMICS OF SPICES' EXPORT

• Spices exports from India rose to Rs 3,977 crore ($626.8 million) during the first quarter of 2015-16, against nearly Rs 3,060 crore ($511.2 million) in 2014-15
  

 

During the first quarter of FY16, the country exported 215,215 tonnes, compared with 213,443 tonnes in the corresponding period last year
 

Exports are getting doubled every five years. Last year, it touched $2.4 billion and by 2017, the target is to achieve $3-billion exports
 

Around 52 different spices are exported from the country
 

Rejection levels from the EU dropped to 16 consignments last year, from 180 consignments in 2010-11. In the next two years, target is to bring it to zero