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Spices Board initiatives
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Saturday, 23 September, 2006, 08 : 00 AM [IST]
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s due to its exquisite aroma, texture and taste. India is the largest producer and exporter of spices across the world offering widest range of more than 52 spices. It is today a reliable source of supply, meeting the rigorous quality standards set by the buying countries. Coupled with this, it has the largest domestic market. Spices Board of India has been a major contributor towards this. Formed under the Ministry of Commerce, Government of India, it is highly dedicated towards promotion of Indian Spices. Joint marketing director of Spices Board of India, O T S Nambiar spoke to Ketan Thakkar of Food & Beverage News about the latest developments in Spices Board. Excerpts:
Could you give us a brief background on Spices Board and its area of operation?
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). The Board has 35 regional offices, 38 field offices and 4 research institutions functioning all over India.
The mandate of the Board includes research and development of cardamom, regulation of cardamom trade, quality evaluation/improvement, export promotion of spices and support for post harvest improvement of spices, production and research of vanilla, production of organic spices, development of spices in North East Region. The regulatory functions of the Board include registration of spices exporters and licensing of dealers and auctioneers of cardamom.
What is the current export scenario and what is it that separates Indian spices from the ones abroad?
Indian spices are exported to more than 120 countries. The aroma, flavour and exquisite characteristics of Indian spices are well acclaimed the world over. The wide range of 52 spices and its products in our export basket have impressed the discerning consumers. These buyers have identified India as the destination for quality spices.
Currently, world trade in spices is estimated in the region of 7.5 lakh tonnes. India's share in world trade of spices is 43% in volume and 31% in value. During the year 1995-96, Indian export was 2.03 lakh tonnes valued at Rs 8044 million. By 2005-06, spices export registered a phenomenal growth of 3.2 lakh tonnes valued at Rs 22952 million showing an increase of 57% in quantity and 185% in value at terms over the gap of ten years. North America is the major buyer of Indian spices followed by EU, Japan and West Asian countries..
What are the latest developments at Spices Board?
The Board is aggressively pursuing to popularise Indian brands of spices in major overseas markets (US, EU, Japan etc). The launch of 'Flavourit' brand of spices is a venture in this direction.Spices Board is also promoting organic spices in a big way and support for its production/certification, processing and marketing. Yet another initiative is to move further up in the value chain by giving thrust on branding, earmarking sufficient funds to enable exporters to enter the retail sector with branded spice products where we have not made any foray so far.
What is the current size of the Indian spice exporters and what are the different varieties of spices exported?
Indian spice industry sector consists of 2100 registered exporters, of which 100 exporters contributes to the extent of 80% of exports. Out of the 380 manufacturer exporters, 98 units have been established in-house laboratories and 35 units with ISO 9000, 18 units accredited with HACCP certification. 32 spice brands have been registered with the Board. More than 20 processing units have upgraded their technology to meet the international quality standards/buyers' requirements.
Products of spices like spice powders/curry mixtures, spice oils and oleoresins including mint oil and menthol crystal contribute nearly 50% of the total export earning. Major value added products viz., spice oils & oleoresins, spice powders, mixtures, blends, curry powders/pastes, spices in brine, freeze dried spices, dehydrated spices, frozen spices, colour extracts have got good demand in developed countries. Recent additions to the list are vanilla, herbal spices and organic spices which have become the focus products in the international market. Value addition is the key.
Can you elaborate on value addition factor?
A decade ago, India was exporting spices mainly in bulk form. Now we have moved ahead with more than 60% of our exports in value added forms. Rapid progress has been achieved in the processing, packaging and value addition of spices thanks to the sophisticated technology adopted by this sector in processing, product development, packaging and quality assurance matching the international standards. We are moving up in value chain.
What are the challenges and opportunities ahead?
The opportunities are multifold. An increasing health conscious consumer has made a future of spices sector bright and colourful. Uses of spices beyond culinary has ensured exponential growth for spice sector. Value added spices and natural colours extracted from chilli; turmeric has opened up new markets. The functional attributes of spices have opened up new markets in nutraceutical, cosmetics, health, perfumery, pastry, colour, and flavour and fragrance industries.
At the same time challenges too are aplenty. The reasons like low price, low productivity, increasing cost of production, severe competition from other spice producing countries. Import of spices under free trade agreements etc. is surely having a telling effect on the industry.
While the spice industry is anticipating a giant leap in global trade with more diversified products, the major concern is the implications of the WTO and effects of various international laws and agreements like Agreement on Sanitary and Phytosanitary Measures, the Agreement on Technical Barriers to Trade, Treaty on Intellectual Property Rights and the Multilateral Environmental Agreements. On the changing food safety laws of major importers of spices like USA, E.U & Japan, many of the conditions stipulated in these agreements seem unreasonable and unrealistic for the developing countries and act as trade barriers affecting our market access initiatives.
What is your take on the aspect of food safety and technology?
Food safety is the buzzword, and the stringent legislative measures initiated by the countries reflect their concern for the health of their citizens. This is a serious challenge and at the same time an opportunity for India. By implementing rigorous quality enforcement regime, a major challenge was to contain the Sudan issue in chilli exports. But this has been transformed into a bounty of opportunity by India as could be seen by the burgeoning export of chilli, which touched a peak of 138419 MT valued at Rs 500 crores.
With an aim to equip the industry to respond to the changes in the global Market, the Board has evolved various export promotional schemes, with thrust on quality, value addition technology, packaging and market promotion.
Board also encourages exporters to acquire state-of-the-art technology through appropriate schemes to make the industry globally competitive. It has schemes to promote quality capabilities of the export sector to match the exacting international quality standards. Assistance for overseas fair participation, study tours, buyer-seller meets, trade delegation as well as grant in aid for technology transfer and R&D efforts are also provided to spices exporters. The Board has also taken initiativ
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