Chilli exports likely to fall by 64% on lesser output

The country's chilli exports, which accounted for 22 per cent of the total spices exports in the last financial year, are likely to drop by 64 per cent to 1.35 lakh tonnes in 2007-08 due to a fall in production.

"About 1.35 lakh tonnes of chillies valued at Rs 675 crore have been targeted for exports in 2007-08 against an estimated 3.73 lakh tonnes worth Rs 807 crore last financial year," a Spices Board official said.

In terms of value, the exports are expected to decline by Rs 132 crore, although they are likely to get a better price owing to a global shortfall in production. The provisional estimate for 2007-08 is yet to be approved by the government, he added.

The main reason for the expected decline in export is a 20 per cent drop in output this year, Spices Board Marketing Director S Kanan said.

"Global supply of chillies is less this year as output is hit in both India and China," he added. China, a competitor to India in chilli exports till last year, is currently importing the hot spice from India, Kanan said.

Interestingly, chilli exports in the first two months of the financial year have already reached Rs 223.7 crore, almost one-third of the target.

According to the data released by the Spices Board, 18,000 tonnes of chillies valued at Rs 97.20 crore were exported in May, while about 22,000 tonnes worth Rs 126.5 crore were shipped out of India in April.

Chillies accounted for 22 per cent of the total spices exported from the country and 75 per cent of it came from Andhra Pradesh, the main producing state.

In 2006-07, spices exports went up on the back of a bumper production in many spice crops, the official said, adding "every year cannot be a record year".

The Rs 807 crore export of chillies was a record in 2006-07 which also witnessed the highest ever exports in all spices at 3,73,750 tonnes worth Rs 3,575.75 crore.

India commands a formidable position in the world spice trade with 47 per cent share in volume and 40 per cent in terms of value.