The overall export in spices, according to industry sources is that there is to be a 30 per cent fall in export of spices. And indications are that the export of spices including pepper, cardamom, chilli, ginger, etc, is unlikely to touch the Rs 2,000-crore mark. A major contributor to the fall in exports has been pepper. With IPSTA going in for dollar-denominated trade at the International Commodity Exchange from early next year, it is to be seen how the situation will improve, sources in the Spices Board said.

Sources are skeptic and say that till last year's (99-2000) estimate of 42,100, this year's target has been fixed at 38,500 tonne. This by itself is a fall of 3,600 tonne. Valued against the rupee there is to be a shortage of Rs 42.97 crore. And going by the figures till November, this target seems unachievable. Figures with the Spices Board indicate that till November exports were less than 1,200 tonne which was worth Rs 222 crore. During the same period of April to November last year, pepperexports stood at 29,000 tonne worth Rs 590 crore. Spices Board sources blame the lack of a proper marketing policy. They point to the Brazilian and Vietnamese commodity flush in the market over the last few months to the poor exports by the Indian exporters. Exporters in the country depend mainly depend on bulk trade, and when any country makes more pepper available in the global market sending prices down, the reflection is felt very gravely on Indian markets. Another drawback in India has been low productivity. The sources felt that India ought to concentrate more on value-added products. The tax labyrinth has been a major impediment. There is no sales tax on bulk export of pepper procured from the farmers.

Pepper, however, procured and ground attracted sales tax. Even on the production front, while the target for 2000-01 has been fixed at 79,000 tonne .