Hot Pepper- Opportunities and Challenges

February’ 2017

Advanta Seeds

2Variability in Green Chilli

Colour/Wrinkles/Smooth/ length/width/Appearance/Uses

3Variability in Green Chilli ( Big chilli)

4Variability In Red Dry Chilli

5Variability In Red Dry Chilli

ASTA Colour value/Wrinkles/Smooth/Pungency in SHU/Appearance/Uses

6Various Parameters For Fresh Green and Red Dry Chilli

PARAMETERS GREEN FRESH - Vegetable RED DRY – Spice crop

Usage Fresh fruits, cut pieces, paste Red Dry Powder, oleoresins

Storage Green Fresh- perishable Red Dry – Longer storage

Prices Sensitive to Demand - Supply Storage/Cold can overcome

Export/Dom Major Domestic consumption Exports are increasing

Spread Fragmented –All over India Concentrated in South India

Area 350 K ha 450 K ha

Segmentation 1. CAPKIMCHI – FR1 2. CAPROSHNI – PR13. CAPKERT -- PR1

Market Share Leader in GF & Dual Central Market Less share in Red Dry -South

The world area and production of Red Dry and Green Chilli is around 3.9 Mio ha

and 34.6 Mio Tonnes respectively

China 15.5 Mio Tonnes and India 1.5 Mio Tonnes are the world leaders in Green and Red Dry Chilli Production respectively

Indian chilli is considered to be world-famous for two commercial qualities—colourand pungency levels

The bulk share of chilli production is held by Asian countries, though it is producedthroughout the world

A large demand comes from several chilli-consuming countries such as India, China,Mexico, Thailand, US, UK, Germany and Sweden

Indian share in global chilli exports is around 50%, followed by China 19%

Introduction 7

Nutritional Value per 100 gm

Energy 166 KJ (40 K Cal)

Carbohydrates 8.8 gms

Sugars 5.3 gms

Dietary Fibers 1.5 gms

Fat 0.4 gms

Protein 1.9 gms

Vitamins 150 mg

Minerals 345 mg

Water 88 gms

Capsaicin 0.01- 6 gms

Economic Importance and Nutritional Information for Chilli

Source: USDA Nutrient Database

Economic Importance• The fruit is actually called chilli and is used as a spice in a variety of cuisines all over the

world in different forms as green chillies, dried red chilies as a whole or in powdered form

• The fruit/chilli contains capsaicin, which gives a strong burning tangy sensation when eatenand the red colour is because of the presence of pigment capsanthin

8

Trends in Area and Production- Red Dry and Green Chilli- World

2.0 2.0 2.0 2.0 2.0

3.1 3.13.3 3.4 3.5

2009 2010 2011 2012 2013

Trends in Area and Production- Red Dry Chilli- World Wide

Area (Mio Ha) Production(Mio Tonnes

1.8 1.8 1.9 1.9 1.9

28.8 29.3 29.7 30.8 31.1

2009 2010 2011 2012 2013

Trends in Area and Production- Green Chilli- World Wide

Area (Mio Ha) Production(Mio Tonnes

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Chilli Acreages Split : 48.5 % Green Chilli and 50.6% Red Dry Area Globally

Asia, 64.45

Africa, 23.79

America, 6.91

Europe, 4.86

% Total Area

Asia, 65.66

Africa, 28.28

America, 2.53

Europe, 3.54

% Red Dry Chilli Area

Asia, 63.21Africa, 19.17

America, 11.40

Europe, 6.22

% Green Chilli Area

Hot Pepper Area

Total Area (Mio ha)

Area under Red Dry( Mio Ha)

Area under Green(Mio Ha)

World 3.91 1.98 1.9

Asia is leading in Acreagesof Chilli both in Red Dry(1.3 Mio Ha) as well asGreen (1.2 Mio ha)

Followed by Africa with(0.56 Mio Ha) in Red Dryand (0.37 Mio Ha) inGreen Segment

Source: FAO

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Region Wise - Area, Production and Yield Statistics- Green and Red Dry Chilli

Source: FAO

11

1.22 0.37 0.22 0.12 0.00

21.38

2.89 3.95 2.890.03

17.5

7.8

17.7

24.321.1

Asia Africa America Europe Australia

Area, Production & Yield Statistics-Green Chilli - Globally

Area (Mio Ha) Production(Mio Tonnes Yield (Tonnes/ha)

1.30

0.560.07 0.05

1.841.28

1.75

4.67

2.38

0.720.12 0.24

Asia Africa Europe America

Area, Production& Yield Statistics- Red Dry Chilli- Globally

Area (Mio Ha) Production(Mio Tonnes Yield (Tonnes/ha)

12

0.71 0.23 0.10 0.05 0.01 0.01 0.00

15.82

1.73 2.160.30 0.07 0.07 0.02

China Indonesia Turkey Korea Srilanka India Thailand

Area, Production Statistics of Green Chilli in Asian Countries

Area (Mio Ha) Production(Mio Tonnes)

0.8

0.1 0.1 0.1 0.1 0.04

1.4

0.1 0.1 0.2 0.10.3

India Myanmar Bangladesh Thailand Vietnam China

Area and Production Statistics- Red Dry Chilly in Asian Countries

Area (Mio Ha) Production(Mio Tonnes)

Area, Production and Yield Statistics of Green and Red Dry Chilli in Asia

Global Producers of Green and Red Dry Chilli

Chilies and

peppers, Dried

(in Million Tons)

India

1.5

China

0.3

Pakistan

0.2

Peru

0.2

Thailand

0.1

Chilies and

peppers, Green

(in Million Tons)

China

15.5

Mexico

2.2

Turkey

2.1

Indonesia

1.7

USA

1.0

India

0.07Source: FAO

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World Trade in Chillies account to 16% of the Total Spice Trade

India, 50%

China, 19%

Peru, 9%

Spain, 7%

Mexico, 2%

Others, 13%

Major Chilli Exporters (%)

India China

Peru Spain

U.S, 24%

Malaysia, 12%

Sri Lanka, 9%Spain, 8%Germany,

4%

Others, 43%

Major Chilli Importers(%)

U.S Malaysia

Sri Lanka Spain

India is the largest exporter of Chillies meeting Nearly half of the world’s consumption Demand China also exports to an extent of about 19% of Total Exports in the World Peru Contributes for nearly 9%, followed by Spain Rest of the exports are scattered across a number of countries each contributing in Minor Quantities Major Importers Include US with 24% followed by Malaysia 12% and Sri Lanka 9% of Total Imports

14Chilli: World wide exports to accounted to 0.8 Mio tonnes during FY 14-15.

Indian Export Scenario

Malaysia, 29%

Bangladesh, 19%Sri Lanka,

15%

USA, 9%

UAE, 8%

Others, 20%

Indian Exports (Country Wise)

0.10.1

0.20.2

0.20.2 0.2

0.3

0.3

61

121165 163

194231

322358 373

0

50

100

150

200

250

300

350

400

0.0

0.1

0.1

0.2

0.2

0.3

0.3

0.4

2005-06 2006-07 2007-08 2008-09 2009-10 2010-11 2011-12 2012-13 2013-14

Export of Chillies from India

Qty (Mio Tonns) Mio USD

15

Chilli continued to be India's largest exported spice,accounting for 0.35 Mio Tonnes in quantity and 373Mio USD in value during FY 2013-14

The export grew by 11 % in quantity and 29 % in valueas compared to FY 2013-14

The challenge for us is to give a huge impetus to theirexport and sustain their quality and flavour

South Asia Contributes Highest Acreages & Productivity Globally

0.99 1.01 1.04 1.02 1.00

1.71.8

1.8 1.8 1.9

2009 2010 2011 2012 2013

Area and Production Statistics- South Asia

Total Area (Mio Ha) Production(Mio Tonnes)

0.00

0.05

0.10

0.15

0.20

0.25

2009 2010 2011 2012 2013

Area and Production Statistics- Green ChilliSouthern Asia

Area (Mio Ha) Production(Mio Tonnes)

0.00

0.50

1.00

1.50

2.00

2009 2010 2011 2012 2013

Area and Production Statistics- Red Dry ChilliSouthern Asia

Area (Mio Ha) Production(Mio Tonnes)

Countries Include: India, Bangladesh, Pakistan, Sri Lanka, Bhutan, Nepal

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Chilli Pepper Opportunities in South Asia

● Mkt growth $43 to $80 ( 13% GAGR)

● 1 mio ha area with approx. 40% to 50 % hybridization

● OP to F1 conversion driving market growth in East India,

Bangladesh & Pakistan

● >50% Exports for Red dry chilies from India

● Increasing consumption for green chilli & branded powder

demanding more production

● Thrips, PMR, & viral diseases creating opportunity for value

added traits in Chilli peppers

● Traits with fruit quality, colour value & retention are major

drivers for red dry exports & branding

Major Growth DriversSeed Market by value

Increasing consumption • Increasing demand of Branded powder in Asian countries• Increasing demand of green chilli sauce in Latin America• European countries (France and the United Kingdom) with historical ties to tropical and subtropical

countries are naturally larger markets, due to their larger population of ethnic African, South American and Asian inhabitants looking continuous supply

• in Europe the health benefits of chilli peppers are gaining fame as well

43

51.6

66.4

6.81.8

INDIA PAKISTAN BANGLADESH

Market Value in Mio USD

2016 2020

17

CAGR-15.5% CAGR-10.7% CAGR-4%

Opportunities

• Increasing consumption

• Increasing demand of Branded powder in Asian countries

• Increasing demand of green chilli sauce in Latin America

• European countries (France and the United Kingdom) with historical ties to tropical and subtropical countries are naturally larger markets

• Larger Population of ethnic African, South American and Asian inhabitants are also looking for continuous supply

• In Europe the health benefits of chilli peppers are gaining fame as well

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Challenges

• Erratic climatic conditions • Increasing Disease Pressure as Viral Diseases ,Powdery Mildew & Anthracnose• Infrastructure for Post Harvest Technologies • Pesticide Residual effects & Aflatoxin presence • Government Policies for Export & Imports

Challenges for Seed Companies

• Fragmented Markets• Virus Pressure• Post Harvest Loses during Drying and Storage• Seed Production in Volumes• Uncertainty in Farmer Produce Prices

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20Companies Operating in Chilli Seeds

Pyramid Seeds Pune

Major Chilli Trading Centers in India

States Trading Centers

Andhra Pradesh Guntur, Warangal, Hyderabad, Gudda-pah, Vijayawada, Rajamundri, Nellore.

Maharashtra Nasik, Ahmed Nagar, Sholapur, Aurangabad, Nanded, Amaravathi, Lasalgaon

Karnataka Gharwad, Mysore, Hassan, Bangalore, Bellary, Ranibennur, Hubli, Byadgi.

Madhya Pradesh Bedia, Sanawad, Manawar, Indore

Tamil Nadu Pollachi, Ramanad, Madurai, Trichi, Thani, Dindigul, Virudunagar, Sttur.

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Thanks