 "Workers spread red chilli to dry at the wholesale market in Nagpur, Maharashtra on Friday, 24 April 2015. Photo: PTI")
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Fluctuating demand in some of leading spices such as chilli, turmeric and jeera (cumin) has affected the year-on-year (Y-o-Y) growth in spices exports from India.
As per data from available from Directorate General of Commercial Intelligence and Statistics (DGCIS), export volume increased 25% in 2011-12, while it reported just 3% growth in 2014-15.
Exporters believe that in the current financial year, overall export may marginally increase and growth will be negligible, given minimal growth in exports from India so far.
Prices of chilli and turmeric have also gradually been moving up, thereby impacting demand and translating into slow growth.
Girish Brahmbhatt, managing director of Sterling Exports Inc. said, “It is true that in terms of quantity, India's export has gained in past couple of years, however but growth has not been good due to fluctuation in international demand.”
According to Brahmbhatt, good demand has been alternating between jeera, chilli and turmeric thereby impacting one or the other spices.
According to DGCIS data, spices export increased 34% to 923,271 tonnes in 2014-15 from 688,394 tonnes in 2010-11. The data suggested that year-on year growth has been gradually slowing down. Highest growth in last five years was registered in 2011-12 with 25 % when the country had exported 858,200 tonnes spices.
However, exporters are hopeful for continual rise in volume as so far domestic prices in several spices are ruling at the reasonable level.
“Prices of spices in domestic market have been ruling at reasonable levels which have led to growth in exports from India so far. Chilli and turmeric export have played a major role in boosting exports from India. For the year 2015-16, the country's total spices exports may cross 950,000 tonnes," said Bhaskar Shah, vice chairman of Spice Board and chairman of Indian Spice & Foodstuff Exporters Association (ISFEA).
During April and October 2015, India has exported 490,847 tonnes spices as against 490,831 tonnes in corresponding period last year.
According to Mumbai-based Ajay Kumar Kedia of Kedia Commodity Comtrade Private Limited, "Rupee depreciation against US dollar is one of the reasons for whatever growth in exports we see this year. With this, domestically prices are under control which is encouraging exporters to tap more market globally."
As per Spices Board data, Indian spices price in October 2015, price of Indian chillies in New York market stood at $3.42 per kg as against $2.57 in corresponding period.
Similarly turmeric was being quoted $3.31 per kg against $3.53 and Cardamom small was traded at $15.99 against $16.76 per kg in same period.
Meanwhile, according to a Mumbai based exporter, "Quality of Indian spices are much better this year and this has translated into good demand globally as well."
Source: DGCIS | Compiled by BS Research Bureau| Indian export of Spices | ||||
| Year | Qty (Tonnes) | %Change (QTY) | Value ($ Millilon) | %Change (Value) |
| 2010-11 | 688394 | 14 | 1734 | 38 |
| 2011-12 | 858200 | 25 | 2726 | 57 |
| 2012-13 | 932592 | 9 | 2786 | 2 |
| 2013-14 | 896565 | -4 | 2497 | -10 |
| 2014-15 | 923271 | 3 | 2429 | -3 |
| 2015-16 (Apr to Oct'15) | 490832 | 1470 | ||
| Spices Export | ||||
| Year | Qty (Tonnes) | %Change (QTY) | Value ($ Millilon) | %Change (Value) |
| 2014-15 (Apr to Oct'14) | 490847.51 | 1470.07 | ||
| 2015-16 (Apr to Oct'15) | 490831.98 | -0.003 | 1469.92 | -0.01 |
