Demand from Asian peers spices up exports.

Kochi: Global shortage of certain spices like ginger, garlic and chilli has helped spices exports from India gallop ahead during the current financial year that started in April.

Exports are up both in volume and value terms by almost 30% during the first two months of the FY11, while dollar realisation is more by almost 42%. Problems in the euro zone and lower consumption from the US market have not dented export growth largely due to strong demand from the Asian countries, traders and exporters said.

Exports during the two months stood at 1,06,315 tonne valued at Rs 1,025.30 crore as against 81,950 tonne valued at Rs 788 crore during April-May 2009.

In 2008-09, India exported 5,02,750 tonne of spices and value added products worth Rs 5,560.50 crore ($1173.75 billion) , which exceeded the target for the fiscal by 16% in volume and 24% in value.

Interestingly, Spices Board had lowered the export target for 2009-10 during the initial part of the year because of the weak economic scenario in developed markets. The board has set an ambitious target of Rs 6,000 crore ($1.3 billon) for this fiscal.

Failure of the Chinese garlic crop in 2009 has helped Indian garlic in spreading its taste across Indonesia, Malaysia. Philippines and Bangladesh. Indian garlic exports have increased at a tremendous pace due to global shortage of the commodity.

During the first two months of the current fiscal, garlic exports were up by 2,240% in volume and 2,339 % in value terms. Ginger exports were higher by 376% in volume and 162 % in value terms for the period.

Exports of pepper during April-May was down by 7% in volume at 2,850 tonne. Experts expect pepper trade from India to gather speed during the second half of 2010-2011.

Chilli exports were more by 54% in volume and 51% in value terms in April-May due to short supply in China.

Spices Board estimates exports to stay higher till the new Chinese crop comes to the market by October. Seed spices exports were also on the higher side due to shortage in Syria and Turkey.

Volume of cardamom (small) and nutmeg exports were down because of high domestic price but value realisation is on the higher side for the period.

Source : Financial Express