Exports of spices reach all-time high

Despite the economic slowdown in major consuming markets, spices exports reached an all-time high, both in volume and value terms in 2009-10. And for the first time, India crossed the 500,000 tonnes mark.

Total exports were 502,750 tonnes valued at Rs 5,560.50 crore ($1,173.75 million) against 470,520 tonnes valued at Rs 5,300.25 crore ($1,168.40 million) in the previous financial year. They registered an increase of seven per cent in volume and five per cent in rupee value. In dollar terms, the increase was 0.5 per cent.

The exports during 2009-10 exceeded the target both in terms of volume and value.

In the export basket, spice oils and oleoresins including mint products like mint oils, menthol crystals, and menthol powder contributed 34 per cent to the total export earnings.

Chilli contributed 23 per cent followed by cumin (10 per cent), turmeric (seven per cent) and pepper (six per cent). During the year, Indian spices and spice products reached more than 140 countries around the world. Leading among them were the US (16 per cent), Malaysia (8 per cent), China (7 per cent), UAE (6 per cent), and the UK (5 per cent).

India exported 19,750 tonnes of pepper valued at Rs 313.93 crore as against 25,250 tonnes valued at Rs 413.74 crore last year, registering a decline of 22 per cent in volume and 24 per cent in value. Export of pepper to major destinations like the US, EU etc. declined during the year. It is reported that major US companies are keeping low inventories which resulted in low volume of imports. US continued to be the major market for pepper and imported 8,525 tonnes, accounting for 43 per cent of the total exports of pepper. The other major buyers were UK (1,600 tonnes), Canada (895 tonnes), Germany (880 tonnes), Italy, (835 tonnes) and Japan (600 tonnes).

Export of cardamom (small) during 2009-10 touched all-time high in terms of value. During 2009-10, India exported 1,975 tonnes of the commodity valued at Rs 165.70 crore as against 750 tonnes valued at Rs 47.27 crore in 2008-09, registering an increase of 163 per cent in volume and 251 per cent in value, latest Spices Board data showed.

The reported decline in supply from Guatemala, the largest supplier, is the major reason for the increase in export of cardamom (small) from India.