Spice exports at all-time high of Rs 5,300 crore

Spice exports from India were valued at over $11 billion — an all-time high — in 2008-09.

About 470,520 tonnes were exported and in dollar terms the value fetched was $11.68 billion (Rs 5,300.25 crore), Spices Board Chairman VJ Kurien said.

During the previous financial year, 444,250 tonnes valued at $11.01 billion (Rs 4,435.50 crore) were exported.

The spice exports were at an all-time high both in terms of volume and value. Compared with last year, the export had shown an increase of 19 per cent in rupee value and six per cent in dollar terms.

The increase in quantity was also six per cent, he said. The export had also exceeded the target in terms of volume, rupee value and dollar terms of value. The export target for 2008-09 was 4,25,000 tonnes valued at Rs 4,350 crore ($1,025 million) for the year 2008-09, he said.

However, anticipating a deceleration in exports due to recession, Kurien said the board was projecting exports worth Rs 4,500 crore only in 2009-10. Already there has been a dip in volume of 20-25 per cent to all countries, he said adding the 6-7 months inventory level has been reduced to a month now. The exports to the European Union have also dwindled to a large extent.

The United States continues to be the largest importer from India (21 per cent), followed byMalaysia (seven per cent), UAE (six per cent) and UK (five per cent).

Kurien said in the export basket of spices and spice products, spice oils and oleoresins, including mint products such as mint oils, menthol crystals, and menthol powder contributed 40 per cent of the total export earnings.

Chilli is the largest spice item exported in terms of volume and it also occupies the second position in terms of value. During 2008-09, it accounted for 40 per cent in volume and 20 per cent in value terms of total spices exports.