Indian Spices Sector: An overview


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India produces 2.5 million tonne to 3 million tonne of spices annually.

India produces spices of different categories worth around US$ 3 billion.

In terms of volume and value,  India accounted for 46 percent  and 23 percent in value of global  spice trade. (Source: Spices Board India) India accounts for 25-30 per cent of world’s pepper production, 35 per cent of ginger and about 90 per cent of turmeric production.

Among the Indian Federal states, Kerala tops in pepper (96 per cent), Cardamom (53 per cent), Ginger (25 per cent) production in the country. Andhra Pradesh leads in Chilli and Turmeric production in the country with 49 per cent and 57 per cent. In corriander, cumin and fengugreek production in the country, Rajasthan emerges as the largest producer with 63 per cent, 56 per cent and 87 per cent. (Source: All India Spice Exporters Forum)

The world spice trade is estimated at US$ 1.5-2 billion in terms of value and 500,000 tonnes in terms of quantity.

According to UNCTAD-International Trade Centre estimate, in terms of volume, pepper contributes 34% of total global spices trade followed by chillies 22%, seed spices 17%, tree spices 14%, trumeric 5%, ginger 4%, cardamom 3% and vanilla 1%.

In last five years (1997-98 to 2001-02) India's spice exports increased marginally by 1.20 per cent in terms of volume but export earnings in rupee terms registered an impressive 45.72 per cent growth reflecting marked value addition. In terms US$ the growth in earnings 13.40 per cent.

In the global spice trade composition, pepper tops the list with 34 per cent followed by chillies (22 per cent), seed spice (17 per cent), tree spice (14 per cent), turmeric (5 per cent), ginger (4 per cent), cardamom (3 per cent) and vanilla (1 per cent).

India emerges as the single largest country outside IPC net accounting for 29.77 per cent of global pepper production and 22.16 per cent of global exports – both in terms of volume. The estimate is based on a study (1989-98) of the International Pepper Community (IPC).

In terms of export earnings pepper accounts for 45 per cent of India’s total spice exports. See volumewise exports of Indian spices.

In terms of quantity, the position is just the reverse with chilli taking the largest share (28.10 per cent) in India’s spice export basket compared with pepper (20.16 per cent).

Spice oil and Oleoresins, value added items, together accounts for 15.33 per cent of total export earnings from Indian spices.

The 2001-02 export scenario however was not encouraging with pepper exports being hit by a dull international market. According to provisional estimate, in terms of US$, spices exports from India the current fiscal year (2001-02) dropped by 3 percent at US$ 341.60 million compared with US$ 352.13 mn. However, in terms of Rs, exports were marginally up -- 0.83 percent -- at Rs 1625.35 crore against previous year's Rs 1612.07. In terms of volume exports were up 6.53 percent  at 245,000 tonnes from 181,174 tonnes in 2000-01. Click here to see India's spices export earnings in US$.

With the financial assistance of UNDP, India has undertaken a number of long term projects to better quality of spices, to make available clear, hygienically processed spices in higher quantities for exports. UNDP is funding US$ 1.24 million in the second phase of the programme ending 2003. Indian Spices Bopard would be contributing another US$ 1.12 million besides industry, exporters combined contribution of around US$ 0.95 million.

India's exports of Spices  (2001-02)
(In US$ million)

   

Pepper

44.54
Cardamom (Small) 11.74
Cardamom (Large) 4.28
Chilli 53.77
Ginger 5.26
Turmeric 17.79
Coriander 9.47
Cumin 25.92
Celery 2.85
Fennel 3.42
Fenugreek 3.17
Other seeds (1) 3.72
Garlic 0.81
Other spices (2) 38.29
Curry powder 8.51
Mint Oil 26.83
Spice oleoresin & other oils 81.23
Total 341.60

Itemwise India's Exports of Spices (1997-98 to 2001-02)
(Rs in crore)

Item

1997-98

1998-99

1999-2000

2000-01

2001-02

Pepper

496.35

634.91

884.88

326.33

211.92

Cardamom (Small)

12.66

25.25

32.01

56.55

55.86

Cardamom (Large)

12.64

12.69

16.96

27.69

20.38
Chilli
15.89
25.28
250.65
195.23
255.84

Ginger

72.62

40.58

30.60

22.95

25.03

Turmeric

83.06

12.91

121.68

91.06

84.63

Coriander

64.34

45.47

34.96

27.42

45.05

Cumin

81.35

59.80

34.28

91.06

123.34

Celery

7.99

95.72

10.59

17.00

13.57

Fennel

35.81

15.41

14.41

17.78

16.28

Fengureek

9.87

19.20

20.95

17.88

15.10

Other seed (1)

9.34

8.22

10.26

8.96

17.67

Garlic

7.97

5.97

13.26

10.40

3.87

Other Spices (2)

55.66

76.34

88.50

144.90

182.20

Curry Powder

29.72

35.97

34.60

39.97

40.48

Mint Oil

96.93

12.37

103.10

126.45

127.64
Spice Oil and Oleoresins
23.15
300.86
323.30
364.05
386.48
Grand Total
1115.35
1426.95
2025.08
1612.07
1625.35
Value in US$ million
394.45
428.77
468.12
352.13
341.60
(1) Include Aniseed, Bishop's Weed (Ajwan Seed), Dill Seed, Poppy Seed, Mustard , etc.
(2) Include Tamarind, Asafoetida, Cinnamon, Cassia, Kokam, saffron, etc.
Source:
Spices Board of India

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Volumewise  India's Export of Spices  (1997-98 to 2001-02)
(In tonnes)

 

Spices

1997-98

1998-99

1999-2000

2000-01

2001-02

Pepper

35,907

35,121

42,806

19,250

24,000

Cardamom (Small)

370

476

646

1,100

900

Cardamom (Large)

1,648

1,288

1,211

1,645

1,250

Chilli

51,779

68,019

64,776

61,000

75,000

Ginger

28,268

8,683

8,773

6,580

8,000

Turmeric

28,875

37,298

35,556

34,500

35,000

Coriander

23,734

21,044

13,973

11,700

15,000

Cumin

16,281

10,595

6,145

13,800

14,000

Celery

3,317

4,038

3,497

5,250

4,500

Fennel

12,368

5,296

2,953

4,000

4,000

Fenugreek

6,006

10,221

10,901

9,050

6,000

Other seeds (1)

4,056

2,178

2,349

2,425

5,000

Garlic

3,975

3,978

8,542

11,000

1,100

Other Spices (2)

14,918

20,384

22,012

35,000

37,000

Curry Powder

5,132

5,213

5,814

6,200

6250

Mint Oil

3,018

4,279

2,820

3,875

3600

Spice Oil & Oleoresins

2,419

2,752

3,368

3,625

4400
Grand Total
242,071
240,863
236,142
230,000
245,000
(1) Include Aniseed, Bishops' Weed (Ajwan seed), Dill seed, Poppy seed, Mustard, etc.
(2) Include Tamarind , Asafoetida, Cinnamon, Cassia, Kokam, Saffron, etc.
Source: Spices Board of India 

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World Pepper Production
(In tonnes)

Country

Production

Export

Brazil

25,400

23,300

India

58,600

31,800

Indonesia

47,700

41,600

Malaysia

21,500

21,600

Sri Lanka

4,400

3,700

Thailand

8,600

2,300

IPC Countries

166,200

124,300

Other countries

30,600

19,200

World

196,800

143,500

Source: International Pepper Community

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India's  spices exports (2002-03)

Items

2002-03 (April-December)

Quantity (In tonne) Value (In US$ million)
Pepper 13200 24.97
Cardamom (Small) 490 5.23
Cardamom (Large) 700 2.09
Chilli 48500 46.92
Ginger 3200 3.49
Turmeric 24000 19.15
Coriander 24000 10.26
Cumin 13000 8.46
Celery 5250 2.05
Fennel 3100 2.76
Fenugreek 2900 2.62
Other seeds 5200 3.29
Garlic 5900 2.17
Other spices 19250 13.85
Curry Powder 5600 10.06
Mint Oil 8500 69.85
Oleoresins & other oils 3300 56.21
Total 166013 291.33
Source: Spices Board of India

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Updated on January 31, 2004