Impact of globalization on Indian Spices

What is globalization?
Spread of; manufacturing, services, markets, culture, lifestyle, capital, technology and ideas across the national boundaries around the world. Also the integration of these geographically dispersed economic and social activities.

Introduction:
A spice is a dried seed, fruit, root, bark, or vegetative substance used in nutritionally insignificant quantities as a food additive for flavor, color, or as a preservative that kills harmful bacteria or prevents their growth.

History:
Trade in the ancient world.
The Portuguese in India. Spice Consumption in Europe during the Renaissance The Dutch and English in India

Indian spices today:

India produces a wide range of spices. At present, production is around 3.2 million tones of different spices valued at approximately 4 billion US $, and holds a prominent position in world spice production. The varying climates - from tropical to sub-tropical to temperate-almost all spices grow splendidly in India. Under the act of Parliament, a total of 52 spices are brought under the purview of Spices Board. However 109 spices are notified in the ISO list.

Indian spice range:

Production in tones. Figures 2003-2004

Researched by FAOSTAT (FAO)

India China Bangladesh Pakistan Nepal

1 600 000 99 000 48 000 45 300 15 500 60 900 1 868 700

86 % 5% 3% 2% 1% 3% 100 %

Other countries
Total

Item-wise Export of Spices from India

 Spices Board was constituted on 26th February 1986 under the Spices Board Act 1986 (No. 10 of 1986) with the merger of the erstwhile Cardamom Board (1968) and Spices Export Promotion Council (1960). Spices Board (Ministry of Commerce, Government of India) is the flagship organization for the development and worldwide promotion of Indian spices. An International link. Multi faceted activities QUALTIY CERTIFICATION QUALITY CONTROL REGISTRATION OF EXPORTERS COLLECTION AND DOCUMENTATION OF TRADE INFORMATION PROVISION OF INPUTS TO THE CENTRAL GOVERNMENT ON POLICY MATTERS RELATING TO IMPORT AND EXPORT OF SPICES.

SERVICES OFFERED:
SOIL TESTING AND FERTILIZER ADVISORY SERVICE PLANTATION VISIT RECOMMENDATION FOR PEST AND DISEASE CONTROL SUPPLY OF PLANTING MATERIALS CONDUCTING SPICE CLINICS

Impact of Globalization on Spice Trade:

Major Player in the East 86% is from India, 5% is from China, 3% from Bangladesh, 2% from Pakistan, 1% from Nepal and the rest of 3% from other countries - FAO (Food & Agricultural Organization)

 Spices exports have registered substantial growth during the last five years
Registered an annual average growth rate of 21% in value and 8% in volume. During the year 2010-11, spices export from India has registered an all time high both in terms of quantity and value.

Exports during the year 2010-2011 was over $1.5 billion(6840.71 cr) which is much higher than what was earlier predicted.

Problems faced:
India website announces that it achieved an "all-time high" in spice-export revenue for 2005-06, but since then India's spice trade is facing challenges with production problems at home and new competitors abroad. Production problems New companies from abroad

Production problems
Lack of technology & idea regarding the huge market for the produce. Lack of warehousing facilities Farmers are economically instable

New Companies from abroad

Better technology Access to financial resources Packaging and branding

SPICE PARKS:
India is also setting up five exclusive "spice parks" to facilitate export quality control. Four in the south and a spice park for mint in Lucknow, Uttar Pradesh. The spice parks will offer land within the complex to private entrepreneurs to establish processing units, from which spices will be directly exported. "By 2017, we would like India to be the only processing hub for spice in the world," said Kurien.

Providing a recognition to the spice industry in par with other sectors like IT, garments, etc which are globally recognized sectors of India.