Kochi: Less demand for big volume spices like chilli, pepper and mint products has impacted spices exports from India, which has decreased by almost 5% in volume and value during the first half of the current fiscal. Dollar realisation has plummeted by 17% to $519.72 million from $624.15 million during the first half of the last fiscal.
According to data released by the state-run Spices Board, volume has shrunk 5.6% to 2,39,300 tonne during April-September 2009-10 from 2,53,550 tonne during the same period of the last fiscal. Meanwhile, value of spices exported has decreased 5% in rupee terms to Rs 2,525.86 crore as against Rs 2,660.75 crore during April-September 2008-09.
With export of pepper to the US, EU and other major destinations declining significantly, pepper exports have declined 23.5 % during the period. Indian pepper is out priced in the world due to lower production and declining productivity.
During April- September 2009, India exported 9,750 tonne of pepper valued at Rs 150.64 crore as against 12,750 tonne at valued Rs 215.70 crore of same period in the last fiscal. The drop is 30% in value terms.
Deceleration in exports is being felt across all spices as buyers are opting for minimal inventory. Export of pepper is likely to be on the lower side for the remaining months as the availability has fallen drastically.
Chilli, another major volume and value player, has suffered due to stiff competition from China combined with nil demand from Pakistan. Chilli, which contributed 40% volume of India’s 470,520 tonne spices exports during 2008-09, is also weighed down by global economic recession, Board sources said. The export of chilli during April-September 2009 has been 82,000 tonne valued at Rs 510.08 crore as against 109,000 tonne valued at Rs 581.17 crore of last year.
Last year Pakistan had imported 22,000 tonne of chilli during the first five months of 2008-09. Exports have decreased by 25% in volume and 12% in value for the first half of the current fiscal. Export of cumin, vanilla, mint products and spice oils & oleoresins are also seen lower both in terms of volume and value as compared to the same period of last year.
The Board had scaled down the export target for the current fiscal to 4,35,000 tonne valued at Rs 4,500.00 crore ($ 1000.00 million) as against the performance of 4,70,520 tonne valued at Rs 5,300.25 crore during the last fiscal.
Source : FinancialExpress