Export of spices declines 26% in first quarter

Export of spices and spices products declined 26 per cent in the first quarter (April-June) of the current financial year.

Forex revenue from exports during the period increased 21 per cent, according to the latest data of the Spices Board. A total of 116,900 tonnes of spices and spices products valued at Rs 1,885.2 crore ($421.6 million) were exported during Q1 as against the 157,850 tonnes valued at Rs 1,560.5 crore ($342.3 million) in 2010. In dollar terms, the increase in revenue was 23 per cent. During April-June, export of pepper, cardamom (small), cardamom (large), ginger, turmeric, nutmeg & mace, and other spices like tamarind, asafoetida, etc, increased both in volume and value, compared to same quarter last year.

However, in the case of spice oils and oleoresins, mint products and other seed spices like mustard, ajwainseed etc, exports only increased in terms of value. Export of other spices declined both in volume and value as compared to last year. During the period, 5,750 tonnes of pepper valued at Rs 150.4 crore were exported as against 4,750 tonnes valued at Rs 79.96 crore last year. The unit value of pepper increased from Rs 168.35 a kg in April-June 2010 to Rs 261.52 a kg this year. A total of 590 tonnes of cardamom (small) valued at Rs 58.19 crore were shipped as against 185 tonnes valued at Rs 21.17 crore last year, registering an increase of 219 per cent in quantity and 175 per cent in value. During the periods a total quantity of 140 tonnes of cardamom (large) valued at Rs 11.10 crore were exported as against 55 tonnes valued at Rs 2.89 crore last year, an increase of 155 per cent in quantity and 284 per cent in value.

Case of value-added products, the export of spice oils and oleoresins registered an increase of 46 per cent in value and in the case of mint products there was an increase of 51 per cent in value as compared to last year.

Total 40,500 tonnes of chilli valued at Rs 365.75 crore were shipped in Q1 as against 64,000 tonnes valued at Rs 387.53 crore, registering a fall of 37 per cent in volume and six per cent in value. This is for the first time in the current financial year that chiili exports were facing such a set back. The most serious set back happened in the case of coriander as exports dipped 56 per cent in quantity and 29 per cent in value at 7,500 tonnes valued at Rs 43.50 crore as against 17,000 tonnes valued at Rs 61.30 crore in Q1 of the last financial year.

Exports of garlic were hit badly as the total exports in April-June period were just 900 tonnes compared to 10,800 tonnes in the same period of the last financial year. The receipts from garlic exports dropped to Rs 4.60 crore as against Rs 37.75 crore, registering a drop of 88 per cent. In volume terms, the drop was 92 per cent. Curry powder and paste exports moved steadily on the value front, while in volume terms, they declined two per cent.

Sharp increase was registered in the case of turmeric while ginger exports increased 10 per cent in quantity and 127 per cent in value at 4,300 tonnes valued at Rs 53.52 crore.

Compared to the spices export target of 500,000 tonnes valued at Rs 6,500 crore ($1,450 million) fixed for the financial year 2011-12, the latest achievement is 23 per cent in terms of quantity and 29 per cent in rupee and dollar terms.

Export of spices registered an all-time high in volume and value during FY11 with export earnings crossing $1.5 billion. Total exports during FY11 were up 28 per cent in dollar terms, 23 per cent in rupee value and five per cent in volume. A total of 525,750 tonnes of spices and spice-based value added products valued at Rs 6,840.71 crore ($1,502.9 million) had been shipped as against 502,750 tonnes valued at Rs 5,560.5 crore ($1,173.8 million) in 2009-10.