Spices exports to be hit by strong rupee

KOCHI: The Indian rupee has appreciated by nine per cent in July 2007 as compared with March 2007. This will have an impact on our competitive edge over other producing countries, which may result in some drop in the export of spices and spice products in the coming months, says a press release from Spices Board here.

During the first quarter of this financial year we exported 52,000 tonnes of Chilli valued Rs.288.50 crore against 2,3715 tonnes valued Rs.104.76 crore last year. The demand from the traditional buyers like Malaysia and Sri Lanka are on the rise. India is the main source of red chilli in the international market. After the lean production last year, the new Chinese crop will reach the market only by October. Pakistan, the other producer, may require a large portion of their September crops for domestic consumption. It is reported that the stocks held at different levels are minimal and hence any significant decline in the Chinese crop will put pressure on chilli prices in the next few months.
Seed spices

Among the seed spices, coriander, fennel and fenugreek performed better than last year. During the period April-June 2007, 6,100 tonnes of coriander valued Rs.22.48 crore were exported against 4900 tonnes valued Rs.17.98 crore last year. It is reported that the East European countries like Romania and Bulgaria, where coriander is produced, suffered drought condition and this may have some impact.

During the year, 2100 tonnes of fennel valued Rs.11.99 crore were exported against 1500 tonnes valued Rs.8.95 crore last year. In the same period, export of fenugreek increased to 4850 tonnes valued Rs.12.63 crore against 1940 tonnes valued at Rs.5.96 crore last year.

In the case of cumin seed, there is a decline in export. It came down form 8190 tonnes to 4000 tonnes. However, it is expected that the export of cumin is likely to pick up in the next few months. This is so as there are reports indicating crop loss in Syria due to rain. The export of value added spices like curry powder and spice oils and oleoresins have shown an increase of 6 per cent and 9 per cent respectively in terms of quantity. During the year, 2625 tonnes of curry powder valued Rs.24.17 crore were exported from India as against 2465 tonnes valued Rs.20.05 crore last year. It is significant to note that the unit value has increased from Rs.81 a kg to Rs.92 a kg. In the case of oils and oleoresins the quantity exported has increased from 1445 tonnes to 1575 tonnes and value realisation from Rs.121 crore to Rs.127 crore.
Spices imports

Import of some of the sensitive spices like pepper, cardamom (small) and turmeric has come down during the first quarter of 2006-07. Cardamom (small) import has come down by 44 per cent, pepper import by 8 per cent and turmeric by 22 per cent during the year. Import of other spices like clove, cassia, star anise, etc has almost remained the same as last year. These items are mainly imported for domestic consumption.

The Government has restricted the export obligation period to 120 days from the date of first import consignment cleared by customs under advance authorisation scheme for import and re-export of spices after value addition.