Paper presented at the IFEAT International Conference in Singapore, 4 - 8 November 2012 Essential Asia Pages 39-49 in the printed Conference Proceedings

INDIAS SPICE OLEORESIN INDUSTRY: WAY FORWARD INITIATIVES

Shanavas Bavu Synthite Industries Ltd,

Kolenchery, Cochin 682311,

India shanavas@synthite.com

Globalization began with the spice trade. It was the worlds first long distance exchange, its most

profitable and for two millennia its most mysterious. Source: Historical classic, The Spice Route by John Keay

INTRODUCTION The Indian story of value added spice products began in the early 1970s. Over the years, with investments in quality and supply chain management, it has emerged to be the largest in the world. It is not only a local sourcing and processing point but also changed itself as a value addition hub for the spice crops from the Asia-Pacific region and elsewhere across the globe. This paper reviews the industrys current position, the challenges and its efforts to maintain the progress and deliver the best to the world. OVERVIEW OF THE INDUSTRY The export of spice oleoresins and essential oils from India amounts to 7,800 tonnes in volume and US$ 255 million in value

Figure 1: Oleoresins & Essential Oils Exports (Volume)

6000 6200 6400 6600 6800 7000 7200 7400 7600 7800

2007-08 2008-09 2009-10 2010-11 2011-12

Quantity, MT

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Figure 2: Oleoresins & Essential Oils Exports(Value) The industry has witnessed steady growth in volume and value since the beginning. The post liberalisation economic environment in India facilitated the import of raw materials from Asia-Pacific regions; and the industry leveraged on this to become a processing hub ensuring competitiveness and managing the supply chain effectively. Oleoresin Products from India Black pepper Capsicum Cardamom Cassia Celery Cinnamon Clove Coffee

Coriander Coriander Cumin Curry Leaf Decalepis Dill Seed Fennel Fenugreek

Garlic Ginger Hing Jalapeno Pepper Mace Mustard Nutmeg Onion

Paprika Pimento Rosemary Tamarind Turmeric White Pepper

Essential oils from India Ajowan Aniseed Basil Black Pepper Calamus Cardamom Cassia Cedarwood Celery Seed Cinnamon Bark Cinnamon Leaf

Citronella Clove Bud Clove Leaf Coriander Cumin Seed Curry Leaf Davana Dill Seed Fennel Garlic Ginger

Ginger Grass Green Pepper Hing Horse Radish Juniper Berry Lemongrass Mace Marjoram Mustard Nutmeg Olibanum

Palmarosa Parsley Seed Pimento Rosemary Spearmint Thyme Turmeric Valerian Root Vetivert White Pepper

* The list excludes mint oil and mint products.

0"

50"

100"

150"

200"

250"

300"

2007(08" 2008(09" 2009(10" 2010(11" 2011(12"

Value,'million'US'$'

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Product Mix The pie-chart shows the relative volumes of product mix from the Indian oleoresin industry.

Figure 3: Oleoresins & Essential Oils - Product Mix (volume) Chilli extracts, oleoresin paprika and oleoresin capsicum constitute 40% of the volume. Crop Area Spices are cultivated in a total crop area of 2.94 million hectares that forms only 2% of the total 142 million hectares of agricultural land in India. There is considerable effort from the government agencies and industry towards proliferation of spices cultivation. The results are apparent from the growth of crop area over the last 5 years.

Herbs

Chillies 46%

Cardamom Cinnamon & Cassia

Seed Spices 4% Clove

Others 13%

Onion & Garlic

Ginger 3%

Nutmeg & Mace

4%

Pepper 19%

Turmeric 6%

Vanilla

2.30 2.40 2.50 2.60 2.70 2.80 2.90 3.00

2005 06

2006 07

2007 08

2008 09

2009 10*

million hectares

Figure 4: Crop Area for Spices

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Within the total area of 2.94 million hectares, 7% is utilized for organic farming. This includes the uncertified, but organically grown farming area in the north-eastern states. Approximately 10% of the crop area is covered under Integrated Pest Management (IPM) farming.

Figure 5: Crop Area Distribution The major part of the cropped land is used for seed spices namely cumin, coriander, celery, fennel, fenugreek, dill and ajowan. These are concentrated in the northern states of Rajasthan, Uttar Pradesh, Gujarath, Punjab and Uttaranchal. Chillies being the next major crop are mainly grown in the southern states of Karnataka and Andhra Pradesh. SUSTAINABILITY INITIATIVES The industry has been proactive in its initiatives toward sustainability. The emphases were on the supply chain and processing. In order to ensure the availability of raw materials and consistency, the industry and government agencies promoted backward integration in major spice crops. The industry made considerable investments in process technologies; and was keen on adopting the latest processing equipment. In addition, there have been government incentives to upgrade the processing and quality assurance /quality control infrastructure.

Pepper 7%

Cardamom 3%

Chilli 28%

Ginger 5%

Turmeric 6%

Seed Spices 41%

Onion & Garlic

6%

Tamarind 2%

Clove

Nutmeg

Cinnamon

Vanilla

Saffron

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Raw Material Sustainability Initiatives The objectives of the backward integration programme are:

Raw material availability Sustainability Traceability Predictability Contaminant control Regulatory requirements

The conditions that challenge spices cultivation in India are;

Growing urbanisation Scattered farms Diminishing agricultural incomes Lack of labour force Less scope for mechanization

Raw Material Sustainability Programme The stakeholders in the programme are;

Contract farmers Spice Growers Co-operatives (SGS) Government Agencies NGOs

Figure 6 : Raw material sustainability program

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The methodologies include training as well as awareness programmes, the supply of agricultural materials and technical advice, and financial aid. Successful regions have been rewarded with incentives that provide additional income to the farmers. The industry provides further support by channelling the Corporate Social Responsibility (CSR) activities in the growing regions, ensuring regional welfare. The focal crops in the backward integration program are; Chillies Seed spices Cardamom Turmeric Nutmeg Pepper

Marigold Vanilla Rosemary Mustard Ginger Vetiver

The map of India shows the regions of major backward integration programmes. The respective crops are indicated.

Figure 7 : Rosemary Crop

Figure 8 : Backward Integration Programme in India

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The major challenges in the implementation of the backward integration programme are;

Scattered farms Lack of awareness Cultural and linguistic

barriers The pie-chart indicates the distribution of farm extents in India for spices; 70% of the farms are of less than 10 acres in area. This makes the programme more labour intensive and difficult to handle. TOOLS AND METHODOLOGIES

The industry leverages on IT tools like SAP to maintain traceability. The national database is being setup by the government agencies, integrating the industry data.

IPM PROGRAM In order to maintain the quality requirements on contaminants and toxins; the IPM programme have been effectively implemented in major crops like chillies, seed spices and cardamom. The steps involved in the process are as below.

Soil conditioning Bio agents and organic manure Insect traps (visual / pheromone) and bird

perches Border crops and trap crops Approved plant protection chemicals

Less'than''10'acres''70%'

10'to''25'acres''20%'

''more'than'25'acres''10%'

Figure 9 : Distribution of Farm Sizes (Spices)

Figure 10 : Traceability - SAP Tracking Process

Figure 11 : Chilli Field under an IPM Programme

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Protective microorganisms Natural plant protective chemicals Fortnightly monitoring and data recording. Methodical sampling and local assays.

An IPM program is completed along with the post-harvest handling of the spice. Special emphasis is placed here on controlling mycotoxin incidence. The national programme for backward integration involves setting up Spice Growers Cooperatives and the installation of regional testing labs.

PROCESS TECHNOLOGIES The industry uses a blend of conventional and modern process technologies to achieve optimum levels of quality, productivity and cost.

Traditional steam distillation units are still being used for processing spices like ginger, nutmeg etc. for essential oil. Spinning cone type thin film distillation is employed for fresh spices like ginger, garlic and mustard. This technology results in a superior aroma profile, high yield and faster processing. All major spice oleoresins are still being produced by solvent extraction. Over the years, there had been changes in regulatory requirements for the type of solvents and residue levels. The industry was proactive in upgrading the facilities for these requirements. Investment in the

Figure 12 : Post Harvest Handling of Ginger

Figure 13 : Steam Distillation Plant

Figure 14 : Steam Distillation Kettles

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supercritical CO2 extraction equipment is the way forward to keep up with the residual solvent regulations in future. This technology yields the benefits of a better flavour profile, less thermal impact and lower cost-in use. This technology could replace steam distillation and solvent extraction at least in some spices in the near future in view of the overall cost benefits. The current focus on process technologies is to produce extracts that are not thermally degraded, and exact replication of the spice raw material.

Figure 15 : Batch Type Solvent Extraction Plant

Figure 16 : Continuous Type Solvent Extraction Plant

Figure 17 : Supercritical CO2 Extraction Plant (SCFE)

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DOMESTIC MARKET IN INDIA Finally, a review of the domestic consumption in India is provided. Over the last 5 years, the industry has registered a steady growth of 20% volume year-on-year. The factors that propelled this growth are;

Shifting food habits of the population due to rapid urbanisation.

Increased usage of oleoresins by traditional spice blenders in view of cost-in use and regulatory requirements.

Figure 18 : Centritherm - Thin Film Evaporator

0 10 20 30 40 50 60 70

2007-08 2008-09 2009-10 2010-11 2011-12

Value, in million US $

Figure 19 : Domestic Sale of Oleoresins & Essential Oils

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CONCLUSIONS Indian exports of spice oleoresins are growing; driven by quality, cost and consistency. There have been conscious efforts from industry towards sustainability in farming and supply chain management. It is aiming at a steady increase of agricultural productivity, focusing on quality and reducing environmental impact. Investments in advanced process technologies and the QC infrastructure are definite priorities. With raw material imports, the industry is transforming into a processing hub for materials from Asia-Pacific area and other global locations.

Shanavas Bavu has been leading the team of researchers and application specialists in the New Products Division of Synthite for the last two years. His core experience is in process engineering and he has considerable exposure in setting up and commercialising extraction technologies like SCFE and SCC. He has been in the oleoresin field for 5 years and has a total experience of 17 years in industry.

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