INTRODUCTION If the ghosts of Christopher Columbus and Vasco da Gama continue craving for new sea routes to India's fabulous spices, they won't need a ship to ride across the unknown: Spices constitute an important group of agricultural commodities which are virtually indispensable in the culinary art. They can be primarily defined as farm products used in various forms viz; fresh, ripe, dried, broken, powdered etc. which contributes aroma, taste, flavour, colour and pungency to food rather than a lone food seasoning factors. Spices may be either bark, buds, flowers, fruits, leaves, roots, seeds, stigmas and styles or the entire plant tops. They are well known as appetizers or preservatives and many of them have rich medicinal properties and are used in pharmaceutical, perfumery, cosmetic products, religious rituals etc. India is known as The home of spices. No Indian meal is considered complete without the tangy and delectable flavour of Indian spices, locally known as masala. Indian spices famous the world over for their gastronic value are known to possess high medicinal values. There is no other country in the world that produces as many kinds of spices as India. Some of the most widely consumed spices in the country inter alia include: chilli (Lal Mirach), cinnamon, cumin (Jeera), curry leaf (Curry Patta), fennel (Saunf), asafoetida (hing/heeng), basil (Pudina), Bay Leaves (Taj Patta), cardamom small (Chotti Elaichi), cardamomlarge (Badi Elaichi), ginger (Adrak), mustard, bishops weed (Ajwain), cassia (dal chini), celery (Kala Jeera), clove, coriander (Dhania), fenugreek (Methi), garlic (Lahson), kokam, mint, onion, parsley, pomegranate, turmeric (Haldi), tamarind (Imli) pepper (Kali Mirach), poppy (Post Dana/Khaskhas) rosemary and vanilla. The climate of the country is found suitable for growing almost all spices. Indian spices are renowned all over the world since many centuries. Even before the advent of currency transactions sailors from far off lands used to come and barter their goods for Indian spices. It is not an exaggeration if we say that even today the aroma of Indian spices can be felt at the nook and corner of the world. This aroma had inspired our Henna and Herbal products buyers in making us exporters of spices also.

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India is one of the largest producer, consumer and exporter of spices. India is reported to grow over 50 spices in different parts of the country. The Spices Board, under the umbrella of Ministry of Commerce and Industry, Government of India is the apex body for promoting exports of Indian spices. Established in 1987, the Board has been playing an important role as a developmental, regulatory and promotional agency for Indian spices. Its broad-based activities include formulation and implementation of quality improvement systems, research and development programmes, imparting of education and training to farmers, processors, packers and exporters on post harvest handling, etc. On the promotion of spices, the Spices Board is regularly participating in international food fairs, assisting exporters for trade fair participation, sending business delegations to identified markets for export development.

INDIAS EXPORTS (i). Indias ExportsSegment wise. According to the data released by the Spices Board, Indias exports of spices in 2007-08 registered a growth of 24.04 per cent over the previous year when the same reached a level of Rs2

4,435.50 crore as against Rs 3,575.75 crore in the previous year. A glance at the table reveals that in the year 2007-08, Mint products emerged as the topmost item of exports and had registered a steep growth of 16.31 per cent over the previous year by reaching a level of Rs 1,280.50 crore as against Rs1,100.95 crore in the previous year. Other spices showing a significant growth during the period comprised: pepper (69.66%), coriander (47.75%), cumin (44.67%), chilly (35.87%), curry power, paste and condiments (27.69%), and fenugreek (22.27%). On the other hand, spices going a steep fall during the period comprised: garlic (81.20%), Nutmeg & mace (32.73%), and Ginger fresh/dry (29.56%).

EXPORT PROCEDUER Speaking recently about the export prospects of spices, Mr. Thomas Philip, Chairman, All India Spices Exporters Forum said that India may soon emerge as the worlds leading producer of processed spices doubling annual export earnings to US$1 billion within the next five years. For achieving this, he said that a conducive industry environment and stable policy framework is necessary for such growth. Indian spices, he further added, have changed from the decade ago scenario with value added or processed goods contributing bulk of revenue instead of primary raw materials. The change has taken place during the last one decade. In 1990, 83% of Indias pepper export was in primary form. Today however only 25% of pepper exports are in primary raw material form while the rest goes in processed form.

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State

Major spices grown

Andaman & Pepper, chilly, ginger, clove, nutmeg, cinnamon Nicobar Andhra Pradesh Chilly, Ginger, turmeric, coriander, mustard seed. Garlic and tamarind Arynachal Chilly, Ginger and turmeric Pradesh Assam Chilly and turmeric Bihar Chilly, ginger, turmeric, coriander, mustard seed and garlic Chhattisgarh Chilly, ginger, turmeric, mustard seed and garlic Gujarat Chilly, ginger, turmeric, coriander, cumin, fennel, fenugreek, ajwanseed, dill seed, mustard seed and garlic Himachal Chilly, ginger, turmeric, coriander and garlic Pradesh Jammu & Chilly, ginger, turmeric, garlic and saffron Kashmir Karnataka Pepper, cardamom (small), chilly, ginger, turmeric, coriander, mustard seed, garlic, tamarind, clove, nutmeg, cinnamon and sweet flag Kerala Pepper, cardamom (small), chilli, ginger, turmeric, garlic, tamarind, clove, nutmeg and cinnamon Maharashtra Chilly, ginger, turmeric and garlic Meghalaya Chilly, ginger, turmeric, mustard seed and tejpat State Major spices grown Manipur Mizoram Madhya Pradesh Chilly, ginger, turmeric and mustard seed Chilly, ginger, turmeric and garlic Chilly, ginger, turmeric, coriander, mustard seed and garlic

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Chilly,, ginger, turmeric and garlic Chilly, ginger, turmeric, coriander, mustard seed and garlic Chilly, celery and garlic Chilly, ginger, turmeric, coriander, cumin, fennel, fenugreek, ajwanseed, dill seed, mustard seed, poppy seed and garlic Sikkim Cardamom (large), ginger and turmeric Tamil Nadu Pepper, cardamom (small), chilly, ginger, turmeric, coriander, mustard seed, garlic, tamarind and clove. Tripura Chilly, ginger and turmeric Uttar Pradesh Chilly, ginger, turmeric, coriander, fennel, fenugreek and garlic Uttaranchal Chilly, ginger, turmeric, coriander, fenugreek and garlic West Bengal Cardamom (large), chilly, ginger and turmeric

Nagaland Orissa Punjab Rajasthan

CHILLI: Chilli is the dried ripe fruit of the genus Capsicum. Capsicum annuum is an annual sub shrub, the flowers of which are borne singly and fruits usually pendent, which provide red peppers, cayenne, paprika and chillies and sweet pepper (bell pepper) a mild form with large inflated fruits. Capsicum frutescence is a perennial chilly with small sized pods which are highly pungent. It is commonly known as bird chilly and Tabasco. 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 Origin and Distribution Chilly is reported to be a native of South America and is widely distributed in all tropical and sub tropical countries including India. It was first

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introduced in India by Portuguese towards the end of 15th Century. Now it is grown all over the world except in colder parts.

Uses Dry chilly is extensively used as spice in curried dishes. It is also used as an ingredient in curry powder and in seasonings. Chilli is the largest spice item exported from India in terms of volume and it also occupies second position in terms of value. During 2008-09, chilli accounts for 40% in volume and 20% in value terms of total export of spices from India. The mandatory quality testing of chilli and chilli products by the Board has made the Indian chilli more acceptable in the international markets and helped to achieve this higher level of export in chilli. During the year, India has exported 188,000 tonnes of Chilli and Chilli products valued Rs.1080.95 crores as against 209,000 tonnes valued Rs.1097.50 crores of last year. The traditional buyers of Indian chilli viz. Malaysia, Indonesia and Sri Lanka were active in the market. However, export to Bangladesh has reduced considerably during the year as compared to last year, which resulted in the overall decline in export of chilly. During the year our export to Malaysia was 40,615 MT followed by Sri Lanka (37790 MT), Pakistan (22375 MT), UAE (18,815 MT) and USA (15680 MT).

PEPPER Description Pepper is the dried mature berry of Piper nigrum, a climbing, perennial shrub mostly found in hot, moist region of Southern India. Under cultivation pepper vines are trailed over support as columns, 5-6 mtr tall, 1-2 meter diameter. The root system confined to 75-100 cm radius and depth. The inflorescence is a pendent spike, 3-15 cm long with 50-150 flowers. Flowers are minute,6

white pale yellow, arranged spirally on fleshy pedantries. The specie is naturally self-pollinated and pollen dispersal is aided by the presence of water droplets. Fruit is a single seeded drupe often called berry. It is spherical in shape, green in colour, changing to red on ripping. Origin and Distribution Pepper is considered originated in the hills of South Western Ghats of India. It is now grown in Indonesia, Malaysia, Sri Lanka, Thailand, China, Vietnam, Cambodia, Brazil, Mexico, and Guatemala apart from the country of origin. Pepper requires hot and humid climate and grows between 20 degree North and South latitudes, from sea level to up to 1500 meters. The crop tolerates temperatures between 10 degree and 40 degree C. A well-distributed annual rainfall of 125 to 200 cm is considered ideal for pepper. Uses Pepper is largely used by meat packers and in canning, pickling, baking, considering for its preservative value. It has the ability to correct the seasoning of dishes, therefore used as a final dash at the end of cooking to effectively adjust the flavour. It is an important component of culinary seasoning of universal use and is an essential ingredient of numerous commercial foodstuffs. It is also used as an ingredient in spice mixes. Other products in use are pepper oil, oleoresin, micro encapsulated pepper, green pepper in brine, dehydrated green pepper, frozen pepper etc. Pepper is an essential ingredient in Indian system of medicine. The major functional properties of pepper are analgesic, anti-pyretic, anti-oxidant and anti-microbial. USA is the largest buyer of Pepper in the world market. Fluctuations in the import of pepper by USA have a direct impact on the world pepper trade. During 2008, USA has imported a total quantity of 55,000 MT of pepper as against their average import of about 60,000 MT per annum. It is reported that, due to economic slow down, the major US companies are keeping low inventories resulting in low import volume. In recent years, Indian production is stagnant around 50,000 MT due to low productivity of aged and disease affected pepper plantations. Our competitors like Vietnam with an annual production of almost double that of India has now become one of the major suppliers of pepper in the international markets. However, Indian pepper fetches a7

premium price in major markets because of its preference and intrinsic qualities. During the year 2008-09, India has exported a total quantity of 25,250 tonnes of pepper valued Rs.413.74 crores as against 35,000 tonnes valued Rs.519.50 crores of last year, registering a decline of 28% in volume and 20% in value. Our exports to all major destinations like USA, EU etc. has declined during the year. In 2008-09, USA continued as our major market for pepper and has imported 10,050 MT, accounting for 40% of our total export of pepper. The other major buyers are UK (1475 MT), Italy, (1290 MT), Canada (1265 MT) and Germany (1200 MT). The average fob export price of Pepper has gone up from Rs.148.43 per kg in 2007-08 to Rs.163.86 per kg in 2008- 09. Turmeric: Description Turmeric is the boiled, dried, cleaned and polished rhizomes Curcuma longa. The plant is a herbaceous perennial, 60-90 cm high, with a short stem and tufted leaf. There are 7 to 12 leaves, the leaf sheaths forms the pseudo stem. The lamina is green above and pale green below and has a length of 30-40 cm and width 8-12 cm. Inflorescence is a central spike of 10-15 cm length.About 30 flowers are produced in a spike. Seeds are produced in capsules and there will be one to numerous sunken capsules in an inflorescence. Origin and Distribution It is a native of India. Apart from India, it is cultivated in Pakistan, Malaysia, Myanmar, Vietnam, Thailand, Philippines, Japan, Korea, China, Sri Lanka, Nepal, East & West Africa, South Pacific Islands, Malagasy, Caribbean Islands and Central America. In India, it is cultivated in the States of Andhra Pradesh, Maharashtra, Orissa, Tamil Nadu, Karnataka and Kerala. Turmeric is a tropical crop cultivated from sea level to 1200 meter. It grows in light black, black clayey loams and red soils in irrigated and rainfed conditions. The crop cannot stand water logging or alkalinity.

Uses Turmeric is used to flavour and to colour foodstuffs. It is a principal ingredient in curry powder. Turmeric oleoresin is used in brine pickles and to some extend in mayonnaise and relish formulations, non-alcoholic8

beverages, gelatins, butter and cheese etc. The colour curcumin extracted from turmeric is used as a colourant. Turmeric is also used as a dye in textile industry. It is used in the preparation of medicinal oils, ointments and poultice. It is stomachic, carminative, tonic, blood purifier and an antiseptic. It is used in cosmetics. The aqueous extracts has biopesticidal properties. Turmeric Export of turmeric from India during 2008-09 is an all time high both in volume and value. The export has been 52,500 MT valued Rs. 248.58 crores as against 49,250 MT valued Rs.157.00 crores. The major buyers are UAE (5910 MT), Iran (5335 MT), Bangladesh (4595 MT), Malaysia (4825 MT) and Japan (3090 MT). India is the largest supplier of Turmeric in the world market. The other major suppliers are Vietnam, Indonesia and Myanmar. It is reported that the medicinal and cosmetic use of turmeric is increasing significantly over the years.

Vanilla:9

Description Vanilla, a member of the orchid family is a climbing monocot possessing a stout, succulent stem; short petioled, oblong leaves; about 20 cm long. The inflorescence is a raceme with 20 or more flowers. Flowers are 6 cm long, 2.5 cm wide, either yellowish green or white. Fruit popularly known as beans or pod is a capsule, nearly cylindrical and about 20 cm long. Origin and Distribution It is a native of Atlantic Coast from Mexico to Brazil. The important vanilla producing countries are Madagascar, Mexico, Tahiti, Malagasy Republic, Comoro, Reunion, Indonesia, Seychelles and India. Vanilla thrives well from the sea level up to 1000 meter, under hot, moist, tropical climate with adequate well-distributed rainfall. Natural growth is obtained at latitudes, 15 degree North and 20 degree South of the equator. The optimum temperature ranges from 21-32 degree C and rainfall 20002500 mm annually. Dry period of about 2 months is needed to restrict vegetative growth and induce flowering. It grows best in light, porous and friable soils with pH. 6-7. Partial shade is essential for successful cultivation.

Uses Vanilla is used mainly as a flavouring material; a critical intermediary in a host of pharmaceutical products and as a subtle component of perfumes. As a flavouring agent, it is used in the preparation of ice creams, milk, beverages, candies, confectionaries and various bakery items. Area and Production The area of vanilla cultivation in the world recorded during 1999 was 37,525 ha. with production 4403 tonnes. The major vanilla producing countries are Madagascar, Indonesia, Mexico. Comoros and Reunion. In India, vanilla cultivation is gaining in Kerala, Karnataka and Tamilnadu since early 1990s. The area under cultivation at present is about 1000 ha, of which about 30% has started giving yield. The present production of processed vanilla is estimated to be around 6-8 tonnes annually in India.

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Market The aggregate global demand for vanilla is estimated at about 4500 mts a year. The countries, USA, France, UK and Germany account for 60% of world imports, the USA absorbing more than 30%, France, UK and Germany around 10%. These 3 countries are also major re-exporters of both vanilla beans and processed vanilla products. In India Vanilla is predominantly grown by small and marginal growers in their fields interplanting with other crops. It is grown largely in organic situations though not certified.

Kokam Description Kokam is a slender evergreen small tree with drooping branches. It is a dioecious tree growing up to 18 mtr high. The fruit is spherical, purple, not grooved having 5-8 seeds compressed in an acid pulp. Origin and Distribution11

The tree is oriental in origin, found in Southern India, particularly in the tropical rain forest of Western Ghats of Ratnagiri, Konkan, Coorg and Wynadu region. It is also found in the evergreen forests of Assam, Khasi, Jantia hills, West Bengal and Gujarat. The crop prefers warm and moderately humid tropical climate with a total rainfall range of 25005000mm grows under a mean annual temperature of 20-30 degree C, 6080% humidity and up to an altitude of 800 mtrs . Uses The ripened, rind and juice of Kokkam fruit are commonly used in cooking. The dried and salted rind is used as a condiment in curries. It is also used as a garnish to give an acid flavour to curries and for preparing attractive, red, pleasant flavoured cooling syrup. Kokkam butter used as an edible fat, is nutritive, demulcent and antiseptic. The rind has antioxidant property Cardamom Description Cardamom of commerce is the dried ripe fruit (capsules of cardamom plant) often referred as the Queen of Spices because of its very pleasant aroma and taste. Cardamom is a perennial, herbaceous, rhizomatous plant. Based on the nature of panicles, three varieties are recognized viz. Malabar with prostrate panicle, Mysore with erect panicle, and Vazhukka with semi erect panicle. Plants are of medium size (2 to 3 mtr height) with pubescent leaves (on the dorsal side) and fruits globose in the case of Malabar, whereas plant robust (3 to 4 mtr height) with leaves glabrous on both sides with ovoid capsules in the case of Mysore. Vazhukka variety is a mix of both the above in physical characteristics. Indian cardamom is offered to the international markets in different grades: 'Alleppey Green Extra Bold' (AGEB), 'Alleppey Green Bold' (AGB) and 'Alleppey Green Superior' (AGS) are names that register instant appeal worldwide. Cardamom oil is a precious ingredient in food preparations, perfumery, health foods medicines and beverages. India, a traditional exporter of cardamom to the Middle East countries where it goes mostly into the preparation of 'Gahwa' - a strong cardamom - coffee concoction without which no day is complete or no hospitality hearty for an Arab. Indian cardamom enjoys a premium preference in the Middle East, Japanese and Russians who relish it for its distinct enriching properties. Origin and Distribution12

Cultivation of cardamom is mostly concentrated in the ever green forests of Western Ghats in South India. Besides India, cardamom is grown as a commercial crop in Guatemala and on small scale in Tanzania, Sri Lanka, El Salvador, Vietnam, Laos, Thailand, Cambodia, Honduras, and Papua & New Guinea. The optimum altitudinal range on growing cardamom is 600 to 1500 mtr. The cardamom growing regions of South India lies within 8 - 30 degree N latitudes and 75-78 degree longitudes. Uses The major use is for the preparation of gahwa a strong cardamom coffee concoction which is a symbol for hospitality among Arabs. Apart from this cardamom is widely used as a flavouring material in whole and ground form. In Asia, it can add a lingering sparkle to every kind of dishes both traditional and modern. In Scandinavian countries it is used in baked goods and confectionaries. In Europe and North America it is an ingredient in curry powder and in some sausages products. Cardamom oil and has applications in flavouring processed foods, cordials, and liquors and in perfumery and in Ayurvedic medicines. Cardamom (Small) During 2008-09, India exported 750 MT of Cardamom Small valued Rs.47.27 crores as against 500 MT valued Rs.24.75 crores in 2007-08, registering an increase of 50% in volume and 91% in value. Saudi Arabia accounts for 520 MT (69%) of our exports followed by Malaysia (30MT), Japan (25 MT) and UAE (20 MT). Our exports mainly consist of high quality grades like AGEB and AGB to Middle East markets especially to Saudi Arabia. The production of Cardamom Small during 2008-09 was 11,000 MT; higher than last years production of 9450 MT. The better production and the low availability from Guatemala, the major competitor of Cardamom Small has resulted in the increase of our exports during 2008-09. Cardamom (Large) During the year India has exported 1875 MT valued Rs.22.81 crores as against 1325 MT valued Rs.15.00 crores in 2007-08. Pakistan is the major buyer of Indian large cardamom accounting for 1485 MT (79%) in 2008-09 followed by UAE (160 MT) and UK (90 MT). India and Nepal are the major producers of Cardamom (Large). On an average we import about 5000 MT of13

cardamom (large) from Nepal to meet the strong domestic demand. During 2008-09, Indian production was 4450 MT; little less than last years production of 4900 MT. Despite the global economic recession, spices export from India has continued its upward trend and has crossed Rs.5000 crores mark for the first time during the year 2008-09. The export during 2008-09 has been 470,520 tonnes valued Rs.5300.25 crores (US $1168.40 million) against 444,250 tonnes valued Rs.4435.50 crores (US $1101.80). The spices export during 2008-09 has also exceeded the target in terms of volume, rupee value and dollar terms of value. Against the export target of 4,25,000 tonnes valued Rs.4,350.00 crores (US$ 1025.00) for the year 2008-09, the achievement of 470,520 tonnes valued Rs.5,300.25 crores (US$ 1168.40 million) is 111% in quantity, 122% in rupee value and 114% in dollar terms of value. Indian spices and spice products reached more than135 countries in world. The leading among them are USA (21%), Malaysia (7%), UAE (6%), China (6%) and UK (5%).

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FREE TRADE EXPORT. IF THE IMPORTING COUNTRIES NEED TO HAVE THE CERTIFICATES OF NO DISEASE DERIVED FROM REMAINING CHEMICALS ON PLANTS OR THOSE WITH NO PLANT PEST, EXPORTERS MUST REQUEST THE CERTIFICATE. TO REQUEST THE CERTIFICATE FOR THE QUALITY OF FOOD OR EXPORTED AGRICULTURAL PRODUCTS(ONLY FOR THE EXPORTERS WHO NEED THEM). THE VARIOUS TYPES OF CERTIFICATES ARE:

HEALTH CERTIFICATE SANITARY CERTIFICATE MYCOTOXIN CERTIFICATES HEAVY METAL CERTIFICATE MERCURY CERTIFICATE ANALYSIS CERTIFICATE.

CUSTOMS FORMALITIES ARE ALSO REQUIRED TO BE FULFILLED.

FORM P.K.9 INVOICE LETTER OF CREDIT BILL OF LADING PACKING LIST

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EXPORT LICENCE, CERTIFICATE, INVOICE &LAISSEZPASSERS OF THE RELEVANT GOVT. AGENCIES. REPORT OF INSPECTION &INSTALLATION OF CONTAINERS.

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THERE ARE TWO TYPES OF PROCESS PERIOD: (A)-GENERAL CASE: PRODUCT ANALYSIS & INSURING A PHYTOSANITARY CERTIFICATE IN 1 HOUR. PRODUCT ANALYSIS PEST CONTROL & ISSUING A PHYTOSANITARY CERTIFICATE IN 3-5 DAYS. (B)-SPECIAL CASE: SPECIFY A TYPE OF PEST CONTROL DURING GROWING IN A PLANT FIELD. LABORATORY INSPECTION IN 5-17 DAYS.

MAJOR IMPORTERS United States (21%) Malaysia (7%) UAE (6%) UK (5%) COMPETITORS INDONESIA VIETNAM18

Exports have dropped by 23 per cent in volume and 10 per cent in value during April and May of this fiscal, as compared to last year. The export figure this April and May were 82,435 tonnes, valued at Rs 824.7 crore ($167.4 million) against 106,375 tonnes valued at Rs 920.6 crore ($224 million) in the same months of 2008-09. All major spieces have seen a substantial drop in exports in April and May. Some have seen major drop, as with black pepper, 3,000 tonnes valued at Rs 47.5 cr, against 5,580 tonnes, worth Rs 92 cr last year this time. A big fall in US imports of black pepper, at 950 tonnes, compared to 2,000 tonnes in April-May last year was the main reason. Export of chilli, the largest item in the export basket, has decreased by 48 per cent in volume and 34 per cent in value in these two months, 26,000 tonnes worth Rs 159.7 crore against 50,275 tonnes worth Rs 242 cr of exports in April-May 2008. The Spices Board says the decline is mainly due to the absence of Pakistan from the market. In AprilMay of 2008-09, Pakistan had imported 20,000 tonnes of chilli from India. Another setback is in the value-added segments, mainly in spice oils. In this segment, India has more than 80 per cent of the global market. During these two months, export of spice oils has dropped to 1,075 tonnes valued at Rs 111.8 cr, against 1,450 tonnes valued at Rs 136.9 cr last year. In 2008-09, spice oils recorded an all-time high in volume and value terms; export was 6,850 tonnes valued at Rs 720.5 cr against 6,600 tonnes valued at Rs 563 cr in the previous fiscal, an increase of 28 per cent in value and 4 per cent in volume. Curry powder/paste recorded nil growth in April and May, at 2,350 tonnes valued at Rs 283 cr. The export of curry powder during 2008-09 had, again, been an all-time high in terms of quantity and value. Turmeric and coriander have recorded an increase, while nutmeg and mace have seen a sharp one.Around 9,250 tonnes of coriander valued at Rs 475 cr, up by 22 per cent and 3 per cent, respectively, in volume and value, were shipped in these two months. Turmeric recorded a 17 per cent increase in quantity and 82 per cent in value, at 10,500 tonnes valued at Rs 64.5 cr against 9,010 tonnes valued at Rs 35.4 cr. The sharpest increase of 592 per cent in volume and 459 per cent in value was recorded in nutmeg and mace, at 450 tonnes valued at Rs 11.4 crore, against 65 tonnes valued at Rs 2 cr in AprilMay 2008-09.

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Board's initiatives for export development Spices exports have registered substantial growth during the last one-decade, registering an annual average growth rate of 11.1% in value terms. During the year 2007-08, the export earnings from spices have surpassed 1 billion $ mark for the first time and registered an all time high both in terms of quantity and value in spice exports. In 2007-08 the export of spices from India has been 444,250 tonnes valued MLN US $ 1101.80 million registering an increase of 39% in value over 2006-07. India commands a formidable position in the World Spice Trade with 48% share in Volume and 44% in Value. With the support of the Spices Board, exporters have established adequate infrastructure for improving quality on a sustained basis. Quality improvement and technological upgradation are taken up by exporters as an on-going programme. These developments are in tune with the changing levels of market acceptance. Other areas focused upon by the Board are export promotion in identified markets, interaction with policy makers in the importing countries, development of new end uses, farm level training for farmers etc.

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India's share in world trade of spices

2007-08

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-The chairman of SPICES BOARD 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. This year, a large Indonesian speculator of coffee and pepper failed and his stocks are being sold by the banks to importers for quick disposal. Some overseas brokers said we do not expect large quantities of SPICES to be imported into the US during Mar/Apr/May, certainly not the 9,000 tonnes imported between March and June 2008. We believe the quantities being offered are between 2,000-3,000 tonnes maximum and are not being sold in any large quantities. Buyers already long at high prices and poor economic prospects for the coming months will wind down their inventories and then buy as needed from either Vietnam, India or Indonesia whichever origin is most attractive, they said. Most buyers are covered through March only so we do expect a pick up of demand during end Feb/March but as we said before buyers are cautious at best.

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IPC REPORT An IPC report said that the black pepper market continued to be quiet and in India the market showed a downward trend and price eased although limited arrival from current crop. The situation was due to limited overseas demand. Average futures prices at the commodity exchange declined by around 5-6 per cent. On Feb 19, however, prices showed some improvement. In Vietnam, the market was also quiet. 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.

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CONCLUSION The exports of spices thus offer tremendous export potential. For achieving this, there is need to push up production through advanced technologies such as tissue culture and biotechnology, gearing up private entrepreneurs to start processing industries for extraction of essential oils, development of storage and warehousing, transport and market infrastructure in the country, close coordination among various organizations related with exports of spices and creating greater awareness about the benefits of using byproducts of spices viz. spices oils, oleoresins, and natural colours. Besides, special efforts need to be made to push up consumption of aromatic spices in the overseas markets. Despite an all-time high performance in 2008-09, the current financial year has commenced with a pessimistic note on the export of major spices. India had crossed a milestone in the export of spices in 2008-09, as total earnings crossed the Rs 5,000 crore mark for the first time. Exports for the year were 470,520 tonnes, up by 6 per cent and valued at Rs 5,300 crore, up by 19 per cent. 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. 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. However, anticipating a deceleration in exports due to recession, Kurien said the board was projecting exports worth Rs 4,500 crore only in 2009-10.23

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. If the assessment of the overseas reports turns out to be a reality and Indian prices remains competitive, orders could come to India in the near future as the buyers who have been reluctant to buy due to the current economic crisis and the comparatively high prices at various origins might have to cover to meet their immediate future demands.

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