July 7, 2020
Spices Board of India has constructed eight spice parks in major production centers by setting up common infrastructure facilities for sorting, cleaning, grading, processing, packing, value addition and proper storage of the spices.
India cultivates around 75 spices and accounts for half of the global trading in spice exports whereby the exports during 2019-20 has reached the milestone of $3 billion.
In wake of the virus outbreak, the spice industry is expected to benefit from the package announced for the MSME units as well as from the package for agriculture sector. Approaches like ‘formalization & global outreach of micro food enterprises’, ‘farm-gate infrastructure development’ and ‘promotion of herbal cultivation’ will be beneficial to the spice sector.
The Cardamom Trade
According to D. Sathiyan, Secretary, Spices Board, the board has taken initiatives that has helped in resolving issues in export of small cardamom to Saudi Arabia. Diplomatic deliberations by Spices Board have paved way for arriving at a favourable resolution, wherein the Saudi authorities have aligned the import standards for small cardamom, with the globally accepted Codex Food Standards of the United Nations. Revision of standards by Saudi Arabia, based on six pesticides, as against over 120 compounds initially prescribed, has enabled a free flow of exports to Saudi Arabia. Board has included exports of cardamom to Saudi Arabia under the mandatory sampling and testing programme. Exports of small cardamom to Saudi Arabia, on resumption, has shown much promise, with over 50 tons getting exported in less than a month and more orders in the pipeline. A surge in export along with resumption of cardamom e-auction since last week of May 2020 is expected to facilitate better price realization by the cardamom growers.
“Spices Board of India has constructed eight spice parks in major production centers by setting up common infrastructure facilities for sorting, cleaning, grading, processing, packing, value addition and proper storage of the spices. The parks are primarily intended to provide for quality improvement and value addition of spices and to help the spice farmers/ farmers groups in shortening the supply chain by facilitating direct linkage with exporters/processors. The units that got established in the parks for value addition have been functioning well. These processing units are providing local employment besides helping the stakeholders, particularly the farmers in getting a better price for their produce through direct market linkage and value addition”, he added.
India grows a wide array of spices and value added spice products and is the largest producer and consumer of the spices in the world. It is also the largest exporter of the spice produce. India tops the world in export of chilli, cumin, turmeric, spice oils and oleoresins etc. Value added spice products contribute to over 51% of the India’s total spice exports of 11 lakh tons valued at Rs. 19,505 crore ($2.8 bn) during 2018-19. Spices exports during 2019-20 has reached the milestone of $3 billion.
The changing order in the global spices and food sector has increased the relevance of infrastructure development for value addition, quality certification, and promotion of immunity boosting properties of spices.
With the ongoing spread of the virus and major setback in the economy, demand for Indian spices has remained constant despite the Covid-19 situation. Leading buyers and trade associations in foreign countries have repeated their demand for Indian spices during the online interactions and trade enablement meetings held during the lockdown period. Importers from US, Japan, gulf and European countries, etc… have requested to ensure uninterrupted supply of spices to the respective countries. The new found emphasis on the immunity boosting properties of food items has greatly favours spices with significant potential to boost exports in the global market. The Board has proposed an export target of $5 billion by 2025 and $10 billion by 2030.