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Presented By-

Saloni Wadhwa A1802009468


Ankur Pandey A1802009169
Abhishek Minocha A1802009167
OVERVIEW
Spices are non-leafy parts of plants used
as a flavoring or seasoning. They are used
to add flavor to foods and beverages, and
as herbal medicines. Asia is known as the
‘Land of Spices’ as it is the place of origin,
production, consumption and export of
most spices. Out of the world’s 70 plant
species grown as spices, 13 are
consideredmajor spices produced in Asia.
OVERVIEW (cntd.)
Spices exports have registered substantial growth during
the last one-decade, registering an annual average
growth rate of 13.1% in value and 9% in volume.
During the year 2009-10, spices export from India has
registered an all time high both in terms of quantity and
value.
In 2009-10 the export of spices from India has been
502,750 tonnes valued Rs.5560.50 crores (MLN US $
1173.75 million) as against 470,520 tonnes valued
Rs.5300.25 crores (MLN US $ 1168.40) in 2008-09,
registering an increase of 7% in volume and 5% in rupee
value.
India commands a formidable position in the World Spice
Trade with 48% share in Volume and 44% in Value.
INDIAN SPICE INDUSTRY
1998 REGISTERED EXPORTERS

364 MANUFACTURER EXPORTERS

100 EXPORTERS (5%) CONTRIBUTE OVER 80%


OF EXPORTS
98 UNITS WITH IN-HOUSE LABORATORIES

16 SPICE HOUSE CERTIFICATE HOLDERS

  5 UNITS CERTIFIED UNDER ISO 9000

INDIAN SPICES LOGO PROVIDED TO


RETAIL/INSTITUTIONAL PACKS

  55 SPICE BRANDS REGISTERED WITH THE BOARD


EXPORT PROMOTION SCHEMES
OF SPICES BOARD
FINANCIAL SUPPORT FOR:

ADOPTION OF HI-TECH IN SPICE PROCESSING

SETTING UP/UPGRADATION OF QC LABORATORY

ISO/HACCP CERTIFICATION

PRODUCT/BRAND PROMOTION, PACKAGING


DEVELOPMENT

PARTICIPATION IN TRADE FAIRS

PRINTING OF PROMOTIONAL LITERATURES


MAJOR PRODUCT SEGMENTS
IN EXPORTS OF SPICES
OTHER SEEDS OTHER SPICES
10.7% 6.1%

GINGER
3.9%
CHILLI
CURRY POWDER 41.1%
2.31%

CORIANDER
10.1%

CUMIN
4.1% CARDAMOM (S)
0.2%
PEPPER
4.2% MINT PRODUCTS
TURMERIC 1.7%
12.8%

OILS & OLEORESINS VANILLA


2.8% 0.01%
MAJOR DESTINATION FOR
INDIAN SPICES

WEST ASIA
9% AFRICAN ZONE
4%
OTHERS
1% EAST ASIA
36%
EUROPEAN UNION
21%

AUST.&OCEANIC ZONE
OTHER EUROPE
1%
AMERICAN ZONE 1%
27%
Major Competitors in the Global
Market
Indonesia
Brazil
China
Brazil
Production Centers of Spices in
India
Andhra Pradesh
Assam
Bihar
Gujrat
Himachal Pradesh
Karnataka
Kerela
Maharashtra
Madhya Pradesh
Manipur
Mizoram
Meghalaya
West Bengal
Tamil Nadu
Uttar Pradesh
PROVISIONS IN FTP
As per the current Foreign Trade Policy, there is
no quantitative restriction on import of spices
into the country except for items like 'seed
quality' spices and garlic.
The tariffs for import have also been steadily
brought down.
Under bilateral agreement with Sri Lanka duty
free import of spices is permitted.
Duty free imports are possible for value addition
and re-export.
Indias's share in world trade of
spices 2009-10
EXPORT FROM INDIA FOR THE
LAST 3 YEARS (Source: Spices Board India)
TREND OF EXPORT OF SPICES
Quality Standards 
1)Bureau of Indian Standards (BIS) –
BIS has prescribed quality standards for 16 spices, spice
powders, concentrates and oleoresins. Spices Board
actively interacts with BIS in finalizing standards for other
spices and to upgrade the existing ones.
e.g.
IS 1798:1982 Black Pepper,whole and ground (1st
revision)
IS 1987:1984Cardamom (capsules and seeds) (2nd
revision)
Quality Standards
2)AGMARK GRADE SPECIFICATIONS FOR SPICES

Detailed specifications have been prescribed in the rules taking into
account the individual characteristics of the spices concerned and
broadly based on physical characteristic. colour. size. density. moisture
content. presence of extraneous matter. damaged produce etc.
3)AMERICAN SPICE TRADE ASSOCIATION (ASTA)
–AMERICAN SPICE TRADE ASSOCIATION (ASTA) CLEANLINESS
SPECIFICATIONS FOR SPICES AND HERBS.
For purposes of these Specifications, extraneous matter is defined as
everything foreign to the product itself and includes, but is not
restricted to: stones, dirt, wire, string, stems, sticks, nontoxic foreign
seeds, excreta, manure and animal contamination.
QUALITY CERTIFICATION
SYSTEM

AWARDED TO PROCESSOR EXPORTERS HAVING EXCLUSIVE


FACILITIES FOR MEETING PRESCRIBED STANDARDS OF QUALITY
PROCESSING

AWARDED TO EXPORTERS OF SPICES INCLUDING MERCHANT


EXPORTERS OF BRANDED CONSUMER PACKS/INSTITUTIONAL PACKS
Problems faced by the Exporters
Scarcity of important raw materials and
other necessary inputs.
Inadequate banking services for export
business.
High shipping freight rates and Non-
availability of shipping space.
High cost of production.
Under utilization of capacity.
1)Biotic Constraints:
 They are caused by biotic factors mainly diseases and pests, and the lack of
genetic variability.
 Several devastating diseases are well known among spice growers.Sumatra
disease of clove almost wiped out clove production in Indonesia.
 Foot rot disease of black pepper has caused severe damage to growers in
India and elsewhere, and so far none of the existing genotypes have shown
resistance to this disease.
 Many spice crops are propagated vegetatively, thus limiti
 ng the genetic variability, a prerequisite for crop breeding programs. The
presence of two sexes on different plants in nutmeg makes it difficult to
have fruit set without male trees, whose presence without any yield is a
drawback in plantation.
 The need for artificial pollination in vanilla, a labor-intensive operation
makes it uneconomic to produce this delicate spice in some countries where
labor is a problem.
2)Abiotic Constraints: These are caused by
various exogenous natural factors such as
drought,flood, fire, storm, soil toxicity, etc.
3) Socio-economic Constraints: This type of
hindrances is caused by problems in marketing,
quality control, competition with other economic
crops or synthetics, lack of labor and capital
investment, etc.
4)Technological Constraints: These are
problems resulting from the lack of
technology transfer, or the lack of
technologies themselves. These
technologies include the creation of
superior varieties, improved cultural
practices and processing technology.
Recent news articles
New Zealand to host Indian Spice Festival-Oct
30 2010.
(www.indiavision.com/news/article/business/11
9685/ )
Most Indian Spices up on exports.July 29
2010(in.reuters.com/article/idINBOM270160200
80729 )
Indian Spices hit by China and Nigeria price
competition. Nov 27 ,2010
(www.commodityonline.com/news/India-spices-
hit-by-China-Nigeria-price-competition- )
References
http://dspace.vidyanidhi.org.in:8080/dspac
e/bitstream/2009/4905/11/UOR-1981-005-
10.pdf
http://www.indianspices.com/index.php
http://www.journal.au.edu/au_techno/2001
/oct2001/article6.pdf

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