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Spices Industry

Spices Industry and Export In India

India is the world’s largest spice producer. It is also the largest consumer and exporter of spices. The production of different spices has been growing rapidly over the last few years. Production in 2021-22 stood at 10.88 million tonnes. During 2020-21, the export of spices reached an all-time high both in terms of value and volume by registering a growth of 17% in US$ value terms and 30% in volume terms.
During 2021-22, the single largest spice exported from India was chilli followed by spice oils and oleoresins, mint products, cumin and turmeric.
India produces about 75 of the 109 varieties listed by the International Organization for Standardization (ISO). The most produced and exported spices are pepper, cardamom, chilli, ginger, turmeric, coriander, cumin, celery, fennel, fenugreek, garlic, nutmeg & mace, curry powder, spice oils and oleoresins. Out of these spices, chilli, cumin, turmeric, ginger and coriander make up about 76% of the total production.
The largest spices-producing states in India are Madhya Pradesh, Rajasthan, Gujarat, Andhra Pradesh, Telangana, Karnataka, Maharashtra, Assam, Orissa, Uttar Pradesh, West Bengal, Tamil Nadu and Kerala.
India is the largest exporter of spice and spice items. For the year 2021-22, the country exported spices worth US$ 4,102.29 million.
In September 2022, the exports of spices from India increased by 6.62% to US$ 330.46 million. In 2021-22, India exported 1.53 million tonnes of spices. From 2017-18 to 2021-22, the total exported quantity from India grew at a CAGR of 10.47%.
For FY22, total volumes of chilli, cumin, turmeric and ginger exports were 0.55, 0.21, 0.15 and 0.14 million tonnes.
During 2020-21, the export of chilli, ginger, cardamom (small & large), coriander, turmeric, celery, cumin, fennel, fenugreek, other seeds such as ajwan seed, mustard, aniseed, nutmeg & mace; other spices such as asafoetida, tamarind, etc., expanded both in value and volume as compared to 2019-20. Even the export of value-added products such as spice oils & oleoresins grew both in terms of value and volume; export of curry powder/paste increased in terms of value and export of mint products increased in terms of volume.
India exported spices and spice products to 180 destinations worldwide in 2020-21. The top destinations among them were China, USA, Bangladesh, Thailand, the UAE, Sri Lanka, Malaysia, the UK, Indonesia, and Germany. These nine destinations comprised more than 70 per cent of the total export earnings in 2020-21.
Spices worth Rs. 6,27,155.48 lakhs (US$ 791.5 million) were exported to China in 2020-21 which constituted 23% of the overall value exported. USA imported spices worth Rs. 4,65,000.00 lakhs (US$ 586.8 million) in 2020-21, constituting 17% of the total exported value from India. Bangladesh imported spices worth Rs. 2,51,280.47 lakhs (US$ 317.1 million) from the country during the above period and it comprised 9% of the total exported value from India. UAE exported spices worth Rs. 1,65,298.53 lakhs (US$ 208.6 million) from India in 2020-21 which is 6% of the total value exported.
Chilli was the most exported spice from India. During 2021-22, China imported Rs. 3,144 crores (US$ 396.9 million) of chilli in 2020-21. During the same period, China imported cumin worth Rs. 1,397.4 crores (US$ 176.4 crores). Mind products imported by China during the same period stood at Rs. 1,779.6 crores (US$ 227.2 million).
The main products imported by USA are celery, cumin, curry powder, fennel, fenugreek, garlic, chilli, and mint products.
a) Export Development and Promotion of Spices
This initiative by the Spices Board of India aims to support the exporter to adopt high tech processing technologies and upgrade the existing level of technology for the development of industry and to meet the changing food safety standards of the importing countries. The initiative provides benefits of infrastructure development, promoting Indian spice brands abroad, setting up infrastructure in the major spice growing centres, promoting organic spices and special programmes for north-eastern entrepreneurs.
b) Setting up and maintenance of infrastructure for common processing (Spices Parks)
Spices Board has launched 8 crop specific Spices Parks in key production/market centres with an aim to facilitate the farmers to get an improved price realization and wider reach for their produce. The purpose of the park is to have an integrated operation for cultivation, post-harvesting, processing, value-addition, packaging and storage of spices and spice products. The common processing facilities for cleaning, grading, packing, and steam sterilization will help the farmers to enhance the quality of the produce, resulting in better price realization.
c) Spice Complex Sikkim
Spices Board submitted a project proposal to the State’s Cell for setting up a Spice Complex in Sikkim seeking financial assistance for facilitating and demonstrating common processing and value addition in spices to help farmers and other stakeholders in the state.
Spices Board of India
The Spices Board of India is set up for the development and global promotion of Indian spices. It acts as a link between the Indian exporters and importers abroad. The main activities of the board involve promotion, maintenance and monitoring of quality, development of better production methods, guidance, financial and material support to growers, infrastructure facilitation and research.

Source: India Brand Equity Foundation

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