Chilli exports fall as China raises output

Chilli exports from the country is down by 5,844 tonne in the first quarter of the 2005-06 compared with the same period a year ago. The total exports in April-June were down to 34,000 tonne from 39,844 tonne a year ago, according to the Spices Board.

Export earnings from chilli also came down during the period. The total earnings from the chilli exports are down to Rs 115 crore in the first quarter in 2005-06 compared with Rs 145 crore in the same period in 2004-05.

The decline in chilli exports is a key factor in bringing down the total export of spices in the first quarter from the country.

The improvement in China's chilli crop during 2005 compared to a year ago is a major factor for decline in Indian exports, said S Kannan, director marketing Spices Board.

"In the case of chilli exports from India, 2004-05 was an exceptional year," he said. There was virtually no supply from China to the global market last year as their production was down to 250,000 tonne in 2004 compared with their normal average of 700,00 to 800,000 tonne, he said.

However, in the current year, China's chilli production has gone up to 500,000 tonne, Kannan said.

"Though China is yet to regain their normal chilli production the increase in production this year has brought them to the international market," he said.Chilli is the highest earner in India's spices export basket.

In 2004-05 financial year, out of the total spices exports of Rs 2,200 crore, chilli accounted for 23 per cent in value. India exported 138,000 tonne of chillies worth nearly Rs 500 crore during the year.