India's spice exports have surged in the financial year 2006-07, backed by an improvement in quality and a global shortfall in supply of various spices.
The spice exports grew by 22 per cent to touch Rs 3,576 crore (Rs 35.76 billion) in 2006-07, compared to the Rs 2,628 crore (Rs 26.28 billion) in 2005-06.
The major spices that contributed to growth in exports included pepper, chilli, and cumin, said V J Kurian, chairman of Spices Board, the apex spice trade promotion body in India.
Addressing a press conference in Kochi on Thursday, Kurian said in terms of volume, India exported 374,000 tonnes of spices, 43 per cent more than the 350,000 tonnes it did in 2005-06.
He said the various initiatives taken by the Spices Board to improve the quality of Indian chilli has led to a change towards its perception. Three years back, reports had warned that Indian chilli was adulterated with cancer-causing chemical dye, Sudan Red. This had led to the withdrawal of chilli products worth $500 million in Europe.
In the wake of this, the Spices Board made pre-shipment tests of chilli and chilli products being exported mandatory from that year.
These efforts have led to a surge in India's chilli exports, which have doubled to Rs 807.75 crore (Rs 8.08 billion) and the unit value realization grown to Rs 54 a kg from Rs 36.
China, a major chilli producer, imported 900 tonnes of the spice from India, while other major buyers such as Malaysia, Indonesia and Bangladesh increased their imports from India too.
A global supply shortfall saw cumin exports from India, the world's largest producer of the spice grow to 26,000 tonnes, valued at Rs 201.5 crore (Rs 2.01 billion) in 2006-07 against 12,879 tonne worth Rs 98.18 crore (Rs 981 million) in 2005-06.
Exports of mint, which accounts for a full third of India's exports by value, grew to 16,250 tonne, worth Rs 1,100 crore (Rs 11 billion).
But the spice whose exports saw a significant fall was garlic, from 34,688 tonnes worth Rs 48 crore (Rs 480 million) to 11,500 tonnes worth Rs 21 crore (Rs 210 million), mainly due to the sharp decline of shipments to Bangladesh.
Kurian said that the recent appreciation of the rupee against the dollar has given spice exporters cause for concern in India.
The US is the largest market for Indian spices with a share of 22 per cent by volume and 21 per cent by value of overall Indian spice exports in 2006-07.
