With major spices like pepper, chilli and mint products recording a decline in export in terms of both volume and value during the first two months of the current fiscal, spices exports from the nation are likely to register a negative growth after several years.
According to the state-run Spices Board, exports during April and May 2009 declined by 10% in value terms and 23% in volume when compared to the corresponding period of the last fiscal.
During April-May 2009, the export of cardamom, turmeric, coriander, celery, fennel, nutmeg and other seed spices was higher as compared to the same period last year. However, export of pepper, chilli, vanilla, mint products and spice oils & oleoresins have shown decline in terms of both volume and value as compared to last year. In 2008-09, mint products contributed 40% of the export earnings, while chilli’s share stood at 20%. The US continues to be the single largest exporter from India with almost 21% of the market share but it is seen coming down significantly in the current fiscal as buyers opt for smaller inventories.
The last fiscal was extremely good for spices as exports touched 4,70,520 tonne in volume and Rs 5,300.25 crore in value. In 2007-08, exports stood at 4,44,250 tonne valued at $1,101 million (Rs 4,435.50 crore). Spices Board expects a decline of 20-25% in value during the current fiscal due to the slowdown and has brought down the targets.
During April-May 2009, India exported 3,000 tonne of pepper valued at Rs 47.48 crore as against 5,580 tonne valued at Rs 91.96 crore during the corresponding period of the last fiscal. Volume declined by 46% and value by 48% during the two months. Export of pepper to US, the major buyer, has come down by more than 50% to 950 tonne from about 2,000 tonne during April- May 2008.
The export of chilli during April-May 2009 has been 26,000 tonne valued at Rs 159.71 crore as against 50,275 tonne valued at Rs 242.11 crore last year. The decline in export of chilli is mainly due to the absence of Pakistan from the market. Last year, Pakistan imported 20,000 tonne of chilli during April-May from India, board sources said. Mint products exports declined by 21% in volume and 4% in value, while oils & oleoresins registered a decline of 26% in volume and 18% in value during the period.
Export of turmeric during April-May 2009 has been 10,500 tonne valued at Rs 64.50 crore as against 9,010 tonne valued at Rs 35.40 crore in April-May 2008, registering an increase of 17% in volume and 52% in value. The export of coriander seed has also increased from 7,575 tonne valued at Rs 46.07 crore in April-May 2008 to 9,250 tonne valued Rs 47.55 crore in April-May 2009.