Easing of global slowdown and the depreciation of the rupee have shown better results on the export of processed food products like cashewnuts, spices, tea and marine products. The hike in international price also contributed to the overall growth in exports of these products, though there was fall in the quantum of exports due to poor demand.
There was a marginal decline in the export of cashewnuts, but there was increase in value terms because of a major hike in international prices. The country exported 1,08,131 tonnes of cashewnuts during the fiscal 2008-09, which was 5.4% less than the export during the previous year, whereas, in value-terms the country earned Rs 2300 crore, 28.9% more than the previous year. The price increase was mainly due to less arrivals from Vietnam and African countries. However, there was a setback as prices of raw cashewnuts had increased by 50% to Rs 44 per kg, which affected the profit margins of the importers of raw cashewnuts for processing and re-export.
The country has earned more than Rs 5000 crore by the export of spices as against Rs 4,600 crore in 2007-08. There was 6% increase in the export of spices in terms of quantity, 8% in terms of dollar value and 17% in terms of rupee value. The depreciation of rupee against dollar at Rs 50 a dollar helped get more value for the exporters. The prices of pepper, cardamom and some other spices have contributed to the net turnover from exports. Pepper fetched Rs 127.5 per kg, cardamom fetched Rs 806.47 a kg and dry ginger Rs 143.67 in the global market. Though, rupee is gaining value now, the exporters are confident of maintaining the higher export performance.
In the area of marine products exports, an increase of 10% is expected in the fiscal 2008-09. According to the Marine Products Export Development Authority, India exported 539,299 tonnes of marine products valued at Rs 7730 crore during 11 months (April- February). However, exports to the US, EU and Japan had come down following the recession. There is less demand for premium items like prawns from the traditional importers. But the good news is that China, the Gulf and South-East Asian countries are now importing marine products from India.
There is 15% drop in the production of tea globally, due to drought in the producing countries. This will be a blessing in disguise for India's exporters, who will be able to export more at higher prices. Tea is auctioned at Rs 82 a kg as against Rs 65 a kg last year.
India's export of processed food items depends on the policies of the new government. But, the government can only give guidelines to promote exports. It is for the industry to implement international quality standards in order to push up exports.
Source : www.fnbnews.com